Edward Huang, Shawbrook Bank

Edward Huang, Shawbrook Bank

UK-based challenger Shawbrook Bank is working with a credit risk analytics firm, Jaywing, to meet the International Financial Reporting Standards (IFRS) 9 modelling requirements.

Jaywing is helping the bank through the build of a credit risk modelling programme that will underpin credit management, impairment forecast and capital requirement including stress testing and Internal Capital Adequacy Process (ICAAP).

Jaywing says its suite of models will ensure the bank achieves credit grading and meets IFRS 9 guidelines “well ahead” of the implementation deadline on 1 January 2018.

Edward Huang, head of risk and portfolio analytics at Shawbrook Bank, says: “What made Jaywing stand apart is their partnership engagement approach, their practical experience in risk modelling and loss forecasting, their flexibility and adaptability, and ultimately their commitment to timely delivering the solutions within budget to help the bank achieve its strategies including IFRS 9 compliance.”

Jaywing adds it will continue to work with Shawbrook Bank throughout IFRS 9 beyond the model build phase to ensure a “successful” parallel run in 2017 and readiness for IFRS 9 live in 2018.

Coventry calls

Recently, Coventry Building Society announced it is also working with Jaywing to meet the IFRS 9 modelling requirements.

Initial work is already underway and a prototype model for one of Coventry’s mortgage portfolios. The process was done “within ten weeks, a process which can take many organisations much longer”, according to Jaywing.