SAS Expected Credit Loss simplifies the calculation and reporting process for banks by bridging the data gap between finance and risk departments.

The launch follows the introduction of the new International Financial Reporting Standard 9 (IFRS 9), which will require banks to use a new ‘expected loss’ impairment model from 1st January 2018.

Martim Rocha, director for risk business consulting at SAS, said: “The new accounting standards offer a perfect opportunity for banks to take a hard look at internal [data] silos.

“IFRS 9 can be a catalyst for increased integration of risk and finance.

“A common data repository and model management workspace lessens the overhead of managing multiple platforms and will strengthen the audit trail.”

The International Accounting Standards Board (IASB) launched IFRS 9 in July 2014.

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The new standards were introduced to avoid a repeat of the 2008 financial crisis. 

SAS Expected Credit Loss will now allow banks to collect data from different departments under a single transparent platform in order to meet the requirements of the IASB.

The system will also reduce the costs of compliance by minimising duplication and errors.

Coventry Building Society, Standard Chartered and Bank of Montreal are among those that have already chosen SAS to manage their IFRS 9 impairment requirements.

Sanjiv Talwar, head of risk capital, stress testing and model development at Bank of Montreal, added: “The decision to partner with SAS to ensure we met the requirements of IFRS 9 in an effective and efficient manner was a natural choice.

“We chose SAS because of our strong existing relationship, a relationship dating back to the 1970s, and one that aligns closely with the infrastructure of a premier bank.”