OTC Markets Group Introduces Qaravan CECL Solution

Software Module Breaks New Ground on Approach to CECL Compliance for Thousands of U.S. Banks

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May 21, 2019, 07:00 ET

NEW YORK, May 21, 2019 /PRNewswire/ -- OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, today introduced its Qaravan CECL Solution, a turnkey approach to efficiently collect data, document analysis assumptions and generate stakeholder reports that align with the latest CECL guidance. This enhanced software module is tailored to meet the needs of the more than 5000 U.S. regional and community banks seeking a streamlined approach to compliance with the FASB (Financial Accounting Standards Board) standard as well as evolving regulatory guidance.

In contrast to today's "incurred loss" standard, CECL will require banks to establish an allowance for "expected" losses in accordance with rapidly approaching deadlines. Qaravan's CECL solution provides a guided Q&A interface that helps bankers and financial professionals systematically address CECL requirements and determine an appropriate loss allowance under the new standard.

"A solid CECL implementation requires banks to juggle a considerable amount of data and decision points," said Tony Hodson, Senior Vice President of Market Data at OTC Markets Group. "The Qaravan CECL Solution helps bankers efficiently manage what might otherwise be a steep learning curve, equipping banks with a more practical and customizable tool."

Through its intuitive software interface and user-centric features, bankers have the ability to navigate common hurdles such as uploading and segmenting loan level data, developing portfolio forecasts, choosing historical benchmarking periods, incorporating peer data, adjusting for qualitative factors, and selecting reversion criteria.

At the conclusion of each analysis, Qaravan generates a comprehensive 100+ page stakeholder report that details the results as well as the inputs, assumptions, and methodologies used throughout the analysis. Written from the perspective of bank management, the report and data analysis can be readily shared with auditors, examiners and board members to more effectively communicate the bank's approach.

The software also includes features that allow banks to easily clone and modify their prior analysis. This provides a more convenient way for banks to build scenarios and comply with ongoing quarterly update requirements customized to their specific analysis with an informative mix of narrative, visual, and tabular information.

To learn more about Qaravan CECL Solution, please contact Tony Hodson at 212-896-4423 or Chris Grant at 212-220-2212.

OTC Markets Group's Market Data provides mission-critical quote and trade data, as well as company and security information on OTCQX, OTCQB and Pink securities to the trading, investment, legal and regulatory communities. The Company's data products include real-time data, end-of-day data, historical quote data, company financial data, security master data, corporate reference data and compliance data. OTC Markets Group also provides data through leading market data redistributors. For more about OTC Markets Group's market data products, including connectivity information, visit https://www.otcmarkets.com/market-data/overview.

To contact OTC Markets Market Data, call +1 (212) 220-2166 or e-mail [email protected].

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities. Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com

OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.

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About Qaravan^SM Inc.

Qaravan is part of OTC Market Group's comprehensive Market Data offerings specifically designed to provide intuitive risk & performance analytics tailored to banking and finance industry professionals.

Through Qaravan's intuitive online software and integrated Microsoft Excel tools, customers can access interactive versions of FDIC reports and analyze associated regulatory data for competitive analysis, regulatory exam preparation and investor/board communications. Designed to provide bank management, boards of directors and regulators with an enhanced portfolio of research, reporting, metrics and analytics, Qaravan's data platform includes modules that are relevant across the entire banking ecosystem.

Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, [email protected]

SOURCE OTC Markets Group Inc.