Empirical Impact of IFRS 9 on Banking Performance and Credit Risk Management of Moroccan Banks: A Panel Data Analysis (2014-2025)

Zineb Khaless and Rajaa Amzil
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Zineb Khaless: UM5 - Université mohamed 5, Rabat
Rajaa Amzil: UM5 - Université mohamed 5, Rabat

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Abstract: Abctract This paper examines the changes associated with the adoption of IFRS 9 in banking performance and credit risk management among listed Moroccan banks. Although prior studies have analysed the implications of IFRS 9 in several jurisdictions, evidence remains limited for emerging banking systems, particularly in Morocco. Existing research also provides limited longitudinal evidence based on verified bank-level data, especially regarding the differentiated post-adoption behaviour of expected credit loss provisions, coverage ratios and profitability indicators. To address this gap, the study uses a hand-collected panel of five listed Moroccan banks over the period 20142025, based on published IFRS-consolidated and PCEC financial statements. A fixed-effects panel estimator is applied around the 2018 IFRS 9 adoption date controlling for credit risk expected credit losses and leverage. Given the limited number of banks and the common timing of IFRS 9 adoption, the results are interpreted as observed associations and post-adoption changes rather than as definitive causal effects. The findings highlight three main results, First, IFRS 9 is associated with greater informational transparency through more granular credit-risk disclosures and stage-level ECL reporting but this does not translate into a homogeneous increase in the headline loan loss coverage ratio. Second, ECL provisions appear sensitive to macroeconomic shocks particularly during the COVID-19 period suggesting a more forward-looking recognition of credit risk. Third, profitability indicators declined on average after adoption with a pronounced shock in 2020 followed by a heterogeneous recovery across banks in 2021–2025. The study contributes to the literature on IFRS 9 in emerging economies by providing verified longitudinal evidence from Morocco and by showing that IFRS 9 adoption should be analysed through distinct accounting, prudential and informational dimensions. The results suggest that improved disclosure and more granular creditrisk recognition do not necessarily imply a uniform improvement in underlying financial stability or banking performance.

Keywords: NPL; coverage ratio. Paper type: Empirical Research Article; fixed effects; panel data; Morocco; credit risk; banking performance; Expected Credit Loss; IFRS 9; IFRS 9 Expected Credit Loss banking performance credit risk Morocco panel data fixed effects NPL coverage ratio. Paper type: Empirical Research Article (search for similar items in EconPapers)
Date: 2026-07-10
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, 2026, 7, ⟨10.5281/zenodo.21293291⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05695563

DOI: 10.5281/zenodo.21293291

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