IFRS 9 Module 2

Name (Last Name, First Name)

Team

This triggers movement from Stage 1 to Stage 2. It is based on an organisation's internal assessment of the increase in the risk to default.

Dynamic Organisation Movement

Significant Increase in Legal Risk

Significant Increase in Credit Risk

Static Data Update

This is the likelihood that the counterparty will default over a certain time horizon

Exposure at Default

Loss Given Default

Definition of Default

Probability of Default

What type of ECL should be recognized for non-performing accounts?

Lifetime ECL

Short-term ECL

12-Month ECL

Permanent ECL

This method calculates the probability of default in cycle-neutral economic conditions

Circular Method

Logistic Regression

Pont-in-Time (PiT)

Through-the-Cycle (TTC)

This is the assigned loss estimate when a counterparty has defaulted, after all recoveries are taken into account.

Exposure-at-Default

Loss Given Default

Probability of Default

Definition of Default

Which of these influence PD, EAD & LGD?

currency

customer type

outstanding

company ranking

maximum limit

client's religious belief

macroeconomic variables

maturity date

address

This method calculates probability of default in current economic conditions

Through-the-Cycle (TTC)

Current Cycle Method (CCM)

Point-in-Time (PIT)

Present Condition Analysis (PCA)

Accounts with default ratings (20,21,22) will fall under what Stage in IFRS 9?

Stage 1

Stage 2

Stage 3

Not Eligible for IFRS

True or False: The higher the LGD, the lower the ECL.

True

False

True or False: The higher the outstanding amount, the higher the EAD.

True

False

An account which previously had a credit rating of 8 and now has a credit rating of 18 will fall under what Stage?

Stage 1

Stage 2

Stage 3

Not Eligible for IFRS

What type of ECL will be recognized for Stage 1 accounts?

12-Month ECL

One Time ECL

Lifetime ECL

Permanent ECL

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