Fourth Global IFRS Banking Survey — Ready to land
26 Jun, 2014
Deloitte has issued its 'Fourth Global IFRS Banking Survey — Ready to Land'. 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.
It summarises 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.
Please click to download Fourth Global IFRS Banking Survey — Ready to land.
Click for previous surveys:
- IFRS 9 Impairment Survey 2011 — A changing landscape (published August 2011)
- Global IFRS Banking Survey — Q1 2012 A changing landscape (published March 2012)
- Third Global IFRS Banking Survey — Still far from land? (published January 2013)
