United Commercial Bank PLC (UCB) has signed an agreement with RAPTAS Resolute Ltd and Global Brand PLC to implement an Expected Credit Loss (ECL)-based provisioning system in line with International Financial Reporting Standard (IFRS) 9. The agreement was signed recently at UCB’s Corporate Office in Dhaka, marking a step towards strengthening the bank’s credit risk management and provisioning framework and bringing its financial reporting further in line with international standards.
Under the initiative, UCB will implement GRC Sphere, an application developed by RAPTAS, to assess credit risks and analyse how current and future economic conditions may affect expected credit losses. UCB said in a press release that the system would support a more forward-looking approach to credit risk assessment by factoring in macroeconomic and financial conditions, potential risks and related developments, helping the bank make more informed, data-driven decisions in managing credit risk.
The implementation is expected to strengthen UCB’s capacity to identify, measure and manage credit risks through a more forward-looking, data-driven ECL assessment framework, while further supporting its provisioning process and aligning its financial reporting practices with international standards.
UCB was represented at the signing by Nabil Mustafizur Rahman, Additional Managing Director and Chief Risk Officer, along with Deputy Managing Directors, heads of various divisions, the Project Manager and other senior officials. RAPTAS Resolute Ltd was represented by its CEO, Yousup Faruqu, while Global Brand PLC was represented by Khandaker Khaled Hasan, Senior General Manager.
