In 2011, the Basel Committee considered some early data from the International Chamber of Commerce Trade Register, suggesting it did not provide sufficient analytical evidence for reducing the CCF in the risk-based approach below 20%.
Our newest report on CCF for Performance Guarantees and Claims – evidence from ICC and GCD, provides new evidence of an average CCF of less than 10%, confirming longstanding claims that the Basel figure might be too conservative.
What do you think? Are trade finance capital requirements too high?
Global Credit Data’s second IFRS 9 benchmarking report confirms banks’ expected credit loss estimates vary by at least factor 4
Global Credit Data, a not-for-profit data-collection initiative jointly owned by more than 50 leading global banks, has today released its second IFRS 9 benchmarking report, with the results highlighting a need for a greater number of banks to participate in the benchmarking process.
GCD is currently concluding a yellow page agreement with various consultant firms who have been working with GCD in the past and are knowledgeable about GCD's data model and/activities. For our members, this will lead to more dedicated studies, focus and working groups. And our newly created Yellow Page section on our website will ease the contact between those partners and the banks.
The year 2019 will be a busy one for all US Banks. With banks, standardsetters and regulators still engaged in a debate about what implementation of the CECL standard for Day 1, there are only 11 month left before public firms “go live” on CECL. The principle-based nature of the standard means that the remaining time needs to be spent on testing assumptions and validating approaches. For many banks, attention is on finalizing implementation plans and to kick-start the parallel run.
GCD is growing further and is seeking as of now a new North American Executive (based in North America) and a new Operations Executive (based in Europe).
The long-term agreement will strengthen the breadth and analysis of the ICC Trade Register, the banking industry’s leading data source for risks in global trade and export finance
Global Credit Data will oversee the collection of banks’ credit-related data, with the next Trade Register report produced by ICC and the Boston Consulting Group to be released in early 2019
Global Credit Data has appointed Richard Crecel from Société Générale as its new Executive Director from September 2018, following retirement of Philip Winckle
SAVE THE DATE: The next North American Conference is hosted by Citibank on September 24 & 25 in New York City.
More details on the agenda will be available in the coming weeks on our website. CECL and the CECL work of GCD (survey plus benchmarking study) will be on the agenda. Please contact any of the GCD Executives if you would like to present during plenary or break-out sessions.
GCD will be working with Accenture and the IIF to help U.S. financial institutions benchmark their CECL models as they are developed. For this purpose, GCD has rolled out a deep methodological survey, providing banks the opportunity to benchmark their methods. We plan to follow the survey with a benchmarking exercise to commence in the early fall. More information can be found here:
