How does Estimator 9 calculate Expected Credit Loss?

Estimator 9 uses advanced statistical models to calculate ECL based on Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). It automates stage classification, forward-looking scenarios, and lifetime ECL calculations per IFRS 9 requirements.

What staging criteria does Estimator 9 use for IFRS 9?

Estimator 9 automatically classifies loans into Stage 1 (12-month ECL), Stage 2 (lifetime ECL), and Stage 3 (credit-impaired) based on Days Past Due (DPD), significant credit deterioration triggers, and qualitative factors.

Is Estimator 9 approved by the State Bank of Pakistan?

Yes, Estimator 9 follows SBP IFRS 9 guidelines and is used by major banks in Pakistan, UAE, Kenya, and other regulated markets with full central bank compliance.

IFRS 9 Solution

Estimator 9 — IFRS 9 ECL Automation

End-to-end expected credit loss (ECL) platform for IFRS 9 compliance—validated by Big 4 auditors and deployed across 60+ banks globally.

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70%

Faster ECL runs

56+

Institutions

36+

Countries

100%

Audit acceptance

Core ECL Calculation Engine

Comprehensive credit risk modeling across all three stages

ECL = DF(tᵢ) × PD(tᵢ) × LGD(tᵢ) × EAD(tᵢ)

DF(tᵢ)

Discount Factor

Time-value adjustment using effective interest rate

PD(tᵢ)

Probability of Default

Point-in-time default probability at time i

LGD(tᵢ)

Loss Given Default

Expected loss severity post-default

EAD(tᵢ)

Exposure at Default

Outstanding exposure at default event

Core Capabilities

Six pillars of quantitative credit risk modeling

Portfolio Segmentation

Discriminant analysis, statistical pooling

Advanced statistical techniques to segment portfolios by risk characteristics, ensuring homogeneous pools for accurate ECL estimation.

Z = β₀ + β₁X₁ + β₂X₂ + ... + βₙXₙ

Macro-economic Scenario Modeling

MEVs identification, MES simulations

PIT PD & LGD Estimation

Term structures, collateralized logic

Bucket-wise EAD Estimation

DPD-based exposure mapping

GPPC-compliant Disclosures

Audit-ready exports, committee artifacts

Stress Testing & Validation

Parametric runs, anomaly detection

Technical Capabilities

Automated SICR (Significant Increase in Credit Risk) identification

Three-stage allocation with transfer tracking

Lifetime vs. 12-month ECL calculation

Credit-impaired asset identification (Stage 3)

Modified assets and forbearance tracking

Purchased or originated credit-impaired (POCI) assets

Write-off and recovery management

Forward-looking information integration

Integrations

Core Banking Systems

Direct API integration

General Ledger

Automated journal entries

AARO Systems

Disclosure automation

Data Warehouses

ETL pipelines

Risk Platforms

Bi-directional sync

Audit Tools

Evidence trail export

Three-Stage ECL Model

Automated stage allocation with SICR detection

Stage 1

Performing Assets

12-month ECL

No SICR since initial recognition

Low credit risk

12-month forward-looking PD

Stage 2

Underperforming Assets

Lifetime ECL

SICR identified

Not credit-impaired

Lifetime forward-looking PD

Stage 3

Credit-Impaired Assets

Lifetime ECL

Objective evidence of impairment

90+ days past due

Individual assessment

SICR Indicators

30+ days past due

Downgrade in credit rating

Forbearance measures

Significant changes in collateral

Validated by External Auditors

Used in 56+ institutions across 36+ countries

Big 4 audit approval

Central bank validated

GPPC-compliant

Continuous monitoring

Deploy IFRS 9 with confidence

Join 60+ banks automating ECL calculations with supervisor-approved models

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Knowledge Base

IFRS 9 Implementation FAQs

Comprehensive answers to common IFRS 9 implementation challenges and technical questions

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