by Jonathan Leonardelli | Mar 11, 2019 | Regulations
I don’t know about you, but I find caterpillars to be a bit creepy[1]. On the other hand, I find butterflies to be beautiful[2]. Oddly enough, this aligns to my views on the different stages of data in relation to model development. As a financial institution (FI)...
by Jonathan Leonardelli | Feb 25, 2019 | Regulations
To appropriately prepare for CECL a financial institution (FI) must have a hard heart-to-heart with itself about its data. Almost always, simply collecting data in a worksheet, reviewing it for gaps, and then giving it the thumbs up is insufficient. Data drives all...
by Jonathan Leonardelli | Feb 4, 2019 | Data
An article published by the Wall Street Journal on Jan. 30, 2019 got me thinking about the challenges of using unstructured data in modeling. The article discusses how New York’s Department of Financial Services is allowing life insurers to use social media, as well...
by Jonathan Leonardelli | Oct 12, 2017 | Regulations
Determining whether an unimpaired asset’s credit risk has meaningfully increased since the asset was initially recognized is one of the most consequential issues banks encounter in complying with IFRS 9. Recall the stakes: The expected credit loss for Stage 1 assets...
by Jonathan Leonardelli | Sep 5, 2017 | Regulations
Calculating expected credit losses under IFRS 9 is easy. It requires little more than high school algebra to determine the aggregate present value of future cash flows. But it is not easy to ascertain the key components that are used by the basic equation—regardless...