The solution is intended to help the Japanese firm adjust to a new alignment with global accounting standards.
Mizuho Financial Group officials report that they have chosen FIS Balance Sheet Manager to help them manage compliance with revised domestic accounting standards in Japan.
The FIS offering is a balance sheet management solution that features modelling, scenario, and simulation capabilities to implement industry-best practice asset liability management (ALM) processes, officials say. “The solution will be utilized by Mizuho to support timely compliance with revised domestic accounting standards in Japan.”
Mizuho officials needed a system designed to help it meet the regulatory compliance changes coming via the Accounting Standards Board of Japan, which is slated to revise domestic accounting standards “to align with global accounting standards, namely International Financial Reporting Standard 9 (IFRS 9),” officials say. A new system also needed to offer adaptability to help the firm manage growing business requirements.
“IFRS 9 requires credit losses on financial assets to be measured and recognized using the ‘expected credit loss (ECL)’ framework,” officials note.
“The new standards require banks to use forward-looking analysis to regularly assess credit losses across their loan portfolios, a shift from prior accounting methods. This process involves handling large datasets and complex scenario modeling, which is highly resource-intensive and susceptible to errors without advanced solutions like FIS Balance Sheet Manager. By automating these complex processes, the solution helps unlock insights for more strategic decision making, with a clear understanding of risk exposure and capital allocation,” officials say.
To meet this need, FIS Balance Sheet Manager offers automation capabilities and can help Mizuho handle multiple accounting-related processes that follow ECL calculation, minus “the need for additional customization,” officials say.
“FIS Balance Sheet Manager stood out for its ability to handle complex accounting needs with precision. New efficiencies through data integration and reporting will also help us optimize our risk profile and enhance our competitiveness,” says Yutaro Aiuchi, deputy general manager in the Credit Risk Management Department at Mizuho Financial Group, in a prepared statement.
FIS is a financial technology company based in Jacksonville, Florida.
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