The Albanian Microfinance Association, in cooperation with the Pricewaterhousecoopers – PWC team, organized the webinar: “Updating ECL models due to COVID-19”. Jakub Černý, Senior Risk Expert at PWC, shared knowledge and experience regarding the need to update the Expected Credit Loss (ECL) models due to Covid-19.

Financial institutions around the world are monitoring and examining the effects of the COVID-19 pandemic. They are working to understand the immediate challenges of society and economies and are experimenting to help themselves and their customers make good decisions in today’s volatile operating environment. In the end, all this translates into impacts on financial reporting mainly in measuring Expected Lending (ECL).

The topics discussed in the webinar were: economic scenarios and macro parameters, the expected impact on ECL models and the next steps to update the ECL models. The session was considered quite useful and provided support and knowledge in addressing risk modeling and predicting the impact of the current situation on microfinance loan portfolios.