Fifth Global IFRS Banking Survey — Finding your way
Deloitte has issued its Fifth Global IFRS Banking Survey — Finding your way. The report captures the current views of 59 major banking groups—including 12 of the 18 global systemically important financial institutions (G-SIFIs)—on recent accounting and regulatory changes. With IFRS 9 published and the FASB's CECL project expected to come to a conclusion soon, this study focuses on how banks are approaching the implementation of the anticipated IFRS 9/FASB CECL model requirements in their organisations. It summarises key findings such as:
- Total anticipated implementation budgets have doubled in the year since our previous survey.
- 76% of banks surveyed expect bank accounts to be more useful for regulators under the new rules.
- A majority of respondents expect to use one or more of the operational simplifications available, despite discouragement from the Basel Committee on Banking Supervision (BCBS).
- 85% of banks surveyed anticipate their expected credit loss provisions to exceed those calculated under Basel rules, mostly driven by the provision of lifetime expected losses under "stage II".
- More than half of respondents indicated that they do not have enough technical resources to deliver their IFRS 9/FASB CECL project and a quarter of these further doubt that there will be sufficient skills available in the market to cover any shortfall.
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)
- Fourth Global IFRS Banking Survey — Ready to land (published June 2014)