Fourth Global IFRS Banking Survey
The 4th Global IFRS Banking Survey captures the current views of 54 major banking groups'—including 14 global systemically important financial institutions on recent accounting and regulatory changes.
The report captures the current views of 54 major banking groups'—including 14 global systemically important financial institutions (G-SIFIs)—on recent accounting and regulatory changes.
The report summarizes key findings such as:
· Three years is most frequently cited as the necessary lead time for all phases of IFRS 9 Financial Instruments.
· There is an increasing expectation that banks' pricing will be affected by the accounting change.
· More than half of banks surveyed believe that the expected loss approach will result in banks' provisions increasing by up to 50% across all loan asset classes.
· 70% of banks surveyed anticipate their IFRS 9 expected loss provision to be higher than current regulatory expected loss. Capital planning uncertainty will continue, as regulators' responses to change are not yet known.
· The key implementation challenges cited were resource constraints and coordinating multi-disciplinary effort including finance, credit, risk and IT.
· 56% of banks surveyed are concerned about credit data reconciliation and credit data quality.