IFRS 9 Implementation from the Perspective of Banking Supervisors

Rachid Awad and Luc Riedweg

No 2026/004, IMF Technical Notes and Manuals from International Monetary Fund

Abstract: The paper explores the role of banking supervisors with respect to banks’ implementation of IFRS 9. It discusses: the benefits associated with IFRS 9 as well as the main challenges from banking soundness and risk management perspectives; the role that banking supervisors should play in achieving a robust implementation of IFRS 9; and steps that can be taken to implement IFRS 9 in a proportionate and sound manner while minimizing procyclicality. It argues that authorities should consider introducing a transition period to provide sufficient preparation time for banks and banking supervisors, with an appropriate sequencing of key tasks to be completed; IFRS 9 should be implemented in a proportionate and sound manner; and regulatory provisioning systems used as prudential backstop should be maintained until supervisors have gained sufficient experience with IFRS 9.

Keywords: financial stability; banking supervision; provisioning; procyclicality; proportionality; International Financial Reporting Standards; credit; credit risk; loans; IMF Library; views ofthe IMF; authoring team; views of the IMF; perspective of banking supervisors; Financial standards; Bank supervision (search for similar items in EconPapers)
Pages: 50
Date: 2026-03-27
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