Comprehensive Coverage of ARS 220.0, 220.3 and 220.5

Fintellix's Impairment solution has been designed in compliance with APS 220 – APRA’s Prudential Standard for Credit Quality. The solution helps ADIs to generate all the reporting forms corresponding to ARS 220.0, ARS 220.3, and ARS 220.5 – the reporting standards for impairment reporting. The solution helps ADIs to report outstanding balances, individual and collective provisions, values of securities held, interest/ income received, and interest / income foregone against impaired facilities.

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The embedded business rules engine can be used to create product-specific business rules to identify

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    Facilities which are 90 days past due

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    An entity which is subject to administration or bankruptcy proceedings

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    A facility where write-off has been taken

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    Restructured facilities

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    Category One, Category Two, Category Three, and Category Four facilities

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    Applicable provision rates for Category One, Two, Three, and Four facilities based on days past due (DPD)

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    Related counterparties based on cross-guarantees, common ownership/ management, controlling ability, financial interdependency etc.

The solution can be integrated with other source systems such as

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    Collateral Management System to track changes in fair values of securities held against impaired facilities

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    Credit Risk Management System to monitor trends in default rates

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    Cash flow Management System to monitor sources of cash flows upon which the ADI is reliant on determining future incurred or estimated future credit losses

3 Steps Approach - Prepare, Process, Present

Preparation

Preparation

Monitor

Customized early warning drilldowns

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    Integration adapters to pull data from multiple source systems

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    Handle varied asset categories using csv uploads/ interactive user interface

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    Creation of extensible banking specific data mart

Processing

Automate Impairment Computation

Handle a variety of asset classes. Provide unified view of impairments

Provision

Built-in accounting interface

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    Data enrichment

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    Provisioning post

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    Early warning alerts

Presentation

Presentation

Meet Regulatory Requirements

Impairment Reporting

Multi-Dimensional Analyses

Insights into potential causes for impairments

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    Slice and dice for impairment views along dimensions like sector, product

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    Pre-defined formats for hassle free regulatory reporting

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    Maker checker facility for review & reclassification of impairments

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Highlights of the Solution

Edit-Check Engine

Edit-Check Engine

Embedded Edit-Check engine to
create any number of user-defined
validation rules.

Hierarchy

Data Lineage

Ability to drill-down from reported
fields to underlying accounts for
tracing errors and mismatches.

Data Adjustments

Data Adjustments

Support for data adjustments to
reported fields.

Create Structures

Create Structures

Ability to create user-defined table
structures to pass data adjustments
directly to the Data Hub.

Data Quality

Data Quality

Embedded Data Profiler tool to define
and validate against configurable data
quality thresholds.

 Calendar

Calendar

In-built calendar to automate
generation of reports at pre-defined
frequencies.

Scaling Factor

Metric Scaling

Configurable scaling factor for
reporting financial positions and
performance as per regulatory/
business requirements

Flexibility

Multi-format Reports

Ability to generate reports in multiple
reporting formats – XLSX, CSV, XBRL,
PDF, XFDF etc.

Form Reporting

Version Control

Version controller for reporting forms
with the ability to archive and access
older versions.

Review Process Flow

Review Process Flow

Review Process Flow (RPF) engine to
easily create unlimited number of
user-defined workflows with any
number of approval levels.

Management Module

Profile Management

User Management module to create
and manage users, roles and access
controls.

Audit Trail

Audit Trail

System generated log files for
Audit Trail.

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