MST Shadow Loss Analysis

Model loss allowance methodologies for optimal decision making

MST Shadow Loss Analysis allows financial institutions to test different models, methodologies, and assumptions in an automated, parallel environment using actual data.

A Powerful Solution

  • Continuity

    Run your current model parallel with one or more alternate methodologies.

  • Comparison

    Compare different models with a variety of assumptions, leveraging your own data.

  • Confidence

    Choose the best model for your institution through testing in an automated environment.

  • Model to Your Methodology

    Choose your model or models. Manage loss rate methods, roll-rate methods, probability-of-default methods, or methods using vintage or other cohorts.

"It is easier to illustrate through the use of the Loan Loss Analyzer reports the up-front provision costs of making loans, which can assist in the pricing decisions related to those loans."
Joseph Polaczyk
“The use of the MST software has greatly enhanced our institution’s ability to report and analyze information in a much more detailed fashion. The system has ‘passed’ both internal and external auditors. As a SOX system, there is significant re-programming and testing time each time the reports need to change, however the flexibility in the MST programming continues to meet our needs.”
Don Mayo
“Shadow Loss Analysis allows us to run migration and PD/LGD models in a parallel environment. I can look at how the allowance calculations differ and how they react with different variables. This helps the CFO to inform the board and manage the capital of the bank for better decision making.”
Kristen Deitrick 

Interested in seeing MST

Shadow Loss Analysis in action?