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As 1 January 2018 quickly approaches, banks are working hard to get ready for a whole new world of loan provisioning in an IFRS 9 world.
Banks are now entering the final build and parallel run phases of their IFRS 9 implementation projects. While good progress has been made, a number of challenges remain, such as data, controls and systems. This has impacted the implementation and testing of key processes and therefore, parallel runs have started later than originally planned.
The volume of enhancements to a financial institution’s organisational engagement, data, systems, quantitative models and governance had been generally underestimated and banks have been busy catching up on the project plans. It is now clear that the management judgment, complexity and volatility in reporting will require more intensive oversight and increased stakeholder scrutiny.
In 2017, EY performed a third IFRS 9 impairment survey of 29 major banking institutions. EY IFRS 9 Impairment Banking Survey outlines the survey results, including the expected impact of IFRS 9, key operating model and policy decisions, and the assessment of business impacts. All results are presented on an anonymous basis.
Please click here to read the report.
For further insights on IFRS 9, including how your institution compares to the results in the survey, please get in touch with your local EY contact.