Reem Finance

The situation

Reem Finance operates a lending business with a loan book spanning corporate, SME and retail credit exposures. As a regulated finance company, Reem has to maintain defensible IFRS 9 expected credit loss models, produce regulator- and auditor-acceptable disclosures, and respond to challenge from internal validation, external audit and the central bank.

The challenge

Building and maintaining ECL models in-house is expensive and error-prone. Spreadsheet-based ECL exposes a lender to regulatory findings and Big-4 challenge, and black-box vendor solutions leave the validation team without visibility into model assumptions. Reem Finance needed an audit-grade engine the credit risk team could defend, not a tool the validation team couldn't see inside.

The solution

Reem Finance runs Estimator 9 for the full IFRS 9 ECL lifecycle. The platform handles three-stage SICR allocation, term-structure PD/LGD/EAD modelling using transition matrices and behavioural data, applies macroeconomic scenarios with probability weighting, and produces GPPC-aligned disclosure packs for the auditor and the regulator. Model assumptions and overlays are documented in the system itself — not in side spreadsheets — so internal validation has full visibility.

Outcomes

• PD / LGD / EAD
  Modelling with full auditability
• Audit-grade
  Lineage from input record to final ECL number
• Three-stage SICR allocation and overlays
• Macroeconomic scenarios with probability weighting