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First Hawaiian Bank selects AxiomSL's solution.

HONOLULU: AxiomSL announced that First Hawaiian Bank, Hawaii's oldest and largest bank, has selected AxiomSL's solution to support its compliance with the new current expected credit loss (CECL) accounting standard for estimating loan loss reserves.

The solution includes the implementation of ControllerView, AxiomSL's signature enterprise data management platform that offers data lineage, risk aggregation, workflow automation, validation and audit functionality. "We're delighted to work with First Hawaiian Bank to ensure they're ready to meet the new accounting requirements posed by CECL," said Harry Chopra, Chief Client Officer of AxiomSL. "CECL is causing an explosion of risk data for banks to manage, as credit assessments have to be done monthly versus annually. In addition, banks need to have an audit trail of the models invoked, calculations made and attribution of their credit losses in a single data ecosystem. By having the end-to-end CECL process implemented in ControllerView's Data Integrity & Control Platform, we help clients with iteration and fine-tuning of the process, enabling them to better manage P&L volatility."

AxiomSL is a leading global provider of regulatory-reporting and risk data management solutions. When CECL takes effect starting December 15, 2019, it will require banks to put reserves aside for expected - rather than incurred - loan and other credit losses in the case of impairment. As a result, CECL will fundamentally change how banks estimate and calculate their expected credit losses, as well as their allowance for loan and lease losses (ALLL). This new accounting standard will demand significant changes to the granularity of data a bank maintains and analyzes - including a forecast of future cash flows, vintage analysis, and control and disclosure of information to track credit quality throughout the lifetime of a loan. In order to achieve compliance, banks' finance and risk management functions must adopt new organizational processes and performance metrics.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Oct 16, 2018
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