COVID 19 IMPLICATIONS ON CREDIT LOSS PROVISIONING RULES UNDER IFRS 9: PRO-CYCLICALITY CONCERNS

Bilal Djelil and Faiz Saidj
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Bilal Djelil: University of Boumerdes(Algeria)
Faiz Saidj: University of Boumerdes(Algeria)

IJEP, 2024, vol. 7, issue 01, Pages: 237-256

Abstract: The objective of this paper is to analyse the procyclicality behavior of Expected Credit Loss (ECL) model introduced by IFRS 9, during the economic downturn due to the Covid 19 pandemic. A regression analysis was conducted on a dataset gathered from euro era in order to investigate the hypothesis suggesting that the new model does not exhibit a procyclical behavior. Our findings indicate that, despite the IASB's expectation that the ECL model would have a countercyclical impact, it still demonstrates procyclical behavior.

Keywords: IFRS9; ECL model; Procyclicality; Covid 19 pandemic (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bjm:ijep00:v:7:y:2024:i:01:id:317

DOI: 10.54241/2065-007-001-013

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