IHS Markit to help banks comply with the Current Excepted Credit Loss

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IHS Markit (Nasdaq: INFO) has announced the launch of its economic and financial scenario solution.

The solution provides eight economic scenarios to help banks comply with the Current Excepted Credit Loss (CECL) estimation required under the Financial Accounting Standards Board (FASB) standard going into effect in 2020.

The eight scenarios include the Macroeconomic Advisers by IHS Markit baseline forecast, three others with better outcomes in terms of near-term growth and four scenarios with worse outcomes, all accessible through the Connect Platform from IHS Markit or able to be implemented across various vendor platforms.

Cboe Global Markets, Inc. (Nasdaq: CBOE) has recently announced a collaboration with IHS Markit Ltd. and BlackRock, Inc. (NYSE:BLK), for Cboe to develop the first-ever broad-based U.S. corporate bond index futures.

Our CECL solution provides the macroeconomic and financial scenarios and historical data to drive a firm’s credit loss estimates, whether produced in house or by a third-party” said Chris Varvares, vice president and co-head of U.S. economics, Macroeconomic Advisers by IHS Markit. “It delivers eight transparent and comprehensive, probability-weighted macroeconomic and financial scenarios from our proprietary models and is able to be implemented across many vendor platforms firms already employ.



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