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Financial Sector Policies

IFRS 9 - A Supervisory Perspective

Deadline passed

Session No.: SA 24.31

Location: Thimphu, Bhutan

Date: August 26-30, 2024 (1 week)

Delivery Method: In-person Training

Primary Language: English

    Target Audience

    Bank supervisors and officials responsible for loan loss provisioning and managing credit risk in countries that have adopted International Financial Reporting Standards (IFRS) or are planning to do so.

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    Qualifications

    To have minimum 5 years' experience in banking supervision.

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    Course Description

    This course explains various aspects of, and issues related to asset classification and provisioning, both from the prudential regulatory perspective and the perspective of accounting/IFRS. It also explores the role of the supervisor in reconciling differences between the two perspectives. In addition to covering loan loss provisioning principles and the requirements of the Basel Committee on Banking Supervision (BCBS), the course discusses IFRS 9's expected credit loss (ECL) recognition principles and related IFRS requirements. The course also tackles IFRS 9 implementation issues, including those related to challenges faced by inspectors during on-site examination. Case studies, role-plays, and hands-on exercises are provided to enhance the effectiveness of the course. Participants are invited (and should be prepared) to share their own experiences and views on this topic.

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    Course Objectives

    Upon completion of this course, participants should be able to:

    • Understand the IFRS and principles and rules related to credit loss recognition and disclosures and the difference between the accounting and regulatory approaches.
    • Meet supervisory challenges in helping banks to implement IFRS 9's ECL requirements as well as balancing the accounting and regulatory requirements in asset classification and provisioning.
    • Recognize major international developments (e.g., BCBS decisions) that affect the application of IFRS 9 and understand their implications.
    • Examine, interrogate and challenge credit risk model design, model management, and model validation used for ECL assessment.
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