Fourth Global IFRS Banking Survey — Ready to land

Published on: 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.

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