EBA reports on results of the second impact assessment of IFRS 9

  • European Union Image

Jul 13, 2017

On July 13, 2017, the European Banking Authority (EBA) published a report on the results of its second impact as­sess­ment of IFRS 9 'Financial In­stru­ments'. For the report, EBA looked at a sample of ap­prox­i­mately 50 in­sti­tu­tions across the European Union.

The exercise, which follows up on the first impact as­sess­ment published in November 2016, has confirmed the EBA's initial ob­ser­va­tions on the stage of prepa­ra­tion for the im­ple­men­ta­tion of IFRS 9 and the estimated impact of IFRS 9 on reg­u­la­tory own funds.

On the qual­i­ta­tive side, the report high­lights that banks have made further progress on the im­ple­men­ta­tion of IFRS 9 since the previous exercise, but smaller banks are still lagging behind in their prepa­ra­tion compared with larger banks. On the quan­ti­ta­tive side, the responses received show that the estimated impact of IFRS 9 is mainly driven by IFRS 9 im­pair­ment re­quire­ments. The estimated increase of pro­vi­sions is on average 13% compared to the current levels of pro­vi­sions under IAS 39.

The full report can be accessed on the EBA website.

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.