> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Calculate 12-Month Expected Credit Loss

> Calculates 12-month Expected Credit Loss (ECL) for Stage 1 financial assets under IFRS 9. Formula: ECL = PD_12m * LGD * EAD * discount_factor. The 12-month ECL represents expected credit losses from default events in the next 12 months, discounted to present value using the effective interest rate. Use this for Stage 1 loan loss provisioning, quarterly financial reporting, and regulatory capital calculations for performing loans with no significant increase in credit risk. [Tier: ENTERPRISE, Credits: 10]



## OpenAPI

````yaml api-specs/regulatory.json post /quantlib/regulatory/ifrs9/ecl-12m
openapi: 3.1.0
info:
  title: FinceptQuantLib API - Regulatory
  description: >-
    Pro-tier regulatory compliance and capital adequacy endpoints covering Basel
    III capital ratios and RWA calculations, SA-CCR counterparty credit risk
    exposure metrics, IFRS 9 expected credit loss provisioning, liquidity
    coverage ratios (LCR/NSFR), and stress testing capital projections. All
    endpoints require Pro tier access and consume 5 credits per request.
  version: 3.0.0
  contact:
    name: Fincept API Support
    url: https://fincept.in
servers:
  - url: https://api.fincept.in
    description: Fincept API Production Server
security:
  - APIKeyHeader: []
tags:
  - name: quantlib-regulatory
    description: >-
      Regulatory compliance and capital adequacy calculations for Basel III,
      SA-CCR, IFRS 9, liquidity ratios, and stress testing. Pro tier required.
    x-displayName: Regulatory
paths:
  /quantlib/regulatory/ifrs9/ecl-12m:
    post:
      tags:
        - quantlib-regulatory
      summary: Calculate 12-Month Expected Credit Loss
      description: >-
        Calculates 12-month Expected Credit Loss (ECL) for Stage 1 financial
        assets under IFRS 9. Formula: ECL = PD_12m * LGD * EAD *
        discount_factor. The 12-month ECL represents expected credit losses from
        default events in the next 12 months, discounted to present value using
        the effective interest rate. Use this for Stage 1 loan loss
        provisioning, quarterly financial reporting, and regulatory capital
        calculations for performing loans with no significant increase in credit
        risk. [Tier: ENTERPRISE, Credits: 10]
      operationId: ifrs9_ecl_12m
      requestBody:
        required: true
        content:
          application/json:
            schema:
              type: object
              required:
                - pd_12m
                - lgd
                - ead
              properties:
                pd_12m:
                  type: number
                  description: 12-month Probability of Default (0-1)
                  minimum: 0
                  maximum: 1
                  example: 0.008
                lgd:
                  type: number
                  description: >-
                    Loss Given Default (0-1) - proportion of exposure lost if
                    default occurs
                  minimum: 0
                  maximum: 1
                  example: 0.45
                ead:
                  type: number
                  description: >-
                    Exposure at Default - outstanding balance plus undrawn
                    commitments
                  example: 1000000
                discount_rate:
                  type: number
                  description: >-
                    Discount rate (effective interest rate) for present value
                    calculation. Use 0 for no discounting.
                  default: 0
                  example: 0.055
            examples:
              corporate_loan:
                summary: Corporate loan - Stage 1
                value:
                  pd_12m: 0.008
                  lgd: 0.45
                  ead: 1000000
                  discount_rate: 0.055
              retail_mortgage:
                summary: Retail mortgage - low risk
                value:
                  pd_12m: 0.003
                  lgd: 0.2
                  ead: 250000
                  discount_rate: 0.04
      responses:
        '200':
          description: 12-month ECL calculated successfully
          content:
            application/json:
              schema:
                type: object
                properties:
                  success:
                    type: boolean
                    example: true
                  data:
                    type: object
                    properties:
                      ecl_12m:
                        type: number
                        description: 12-month Expected Credit Loss amount
                        example: 3600
                      pd:
                        type: number
                        description: PD used in calculation
                        example: 0.008
                      lgd:
                        type: number
                        description: LGD used in calculation
                        example: 0.45
                      ead:
                        type: number
                        description: EAD used in calculation
                        example: 1000000
              examples:
                result:
                  summary: 12-month ECL calculation
                  value:
                    success: true
                    data:
                      ecl_12m: 3600
                      pd: 0.008
                      lgd: 0.45
                      ead: 1000000
        '401':
          $ref: '#/components/responses/UnauthorizedError'
        '402':
          $ref: '#/components/responses/InsufficientCreditsError'
        '422':
          $ref: '#/components/responses/ValidationError'
components:
  responses:
    UnauthorizedError:
      description: Authentication information is missing or invalid
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Invalid API key
    InsufficientCreditsError:
      description: Insufficient API credits to complete request
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Insufficient credits. This endpoint requires 5 credits.
    ValidationError:
      description: Request validation error
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: array
                items:
                  type: object
                  properties:
                    loc:
                      type: array
                      items:
                        type: string
                    msg:
                      type: string
                    type:
                      type: string
          example:
            detail:
              - loc:
                  - body
                  - cet1_capital
                msg: field required
                type: value_error.missing
  securitySchemes:
    APIKeyHeader:
      type: apiKey
      in: header
      name: X-API-Key
      description: >-
        API key for authentication. Get your key at
        https://api.fincept.in/auth/register

````