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

Djelil Bilal and Saidj Faiz ()
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Djelil Bilal: UMBB - Université M'Hamed Bougara Boumerdes
Saidj Faiz: UMBB - Université M'Hamed Bougara Boumerdes

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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. JEL Classification Codes : E32 G21 M41; IFRS9; ECL model; Procyclicality; Covid 19 pandemic. JEL Classification Codes : E32; G21; M41 (search for similar items in EconPapers)
Date: 2024-06-30
Note: View the original document on HAL open archive server: https://hal.science/hal-04678411
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Published in International Journal of Economic Performance - المجلة الدولية للأداء الاقتصادي, inPress, 07 (01)

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