21 December 2018
On 20 December 2018, the EBA published some initial observations on the post-implementation impact of IFRS 9 on EU banks (third assessment report since November 2017 and July 2017 and mainly based on data extracted from institutions’ supervisory reporting).
Based on the data collected for the sample of banks, the actual negative day-one impact on CET1 (51 bps on simple average compared to 42 bps in the second impact assessment report from July 2017) and increase in provisions (9% on simple average compared to 13% in the second assessment report from July 2017) broadly confirm the previous estimations from the banks.
EBA notes that the post-implementation review of IFRS9 is just starting and the effective impact of the standard, closely linked to the current and expected macroeconomic circumstances, as well as its implementation, will need to be reviewed through time. For this purpose, the EBA has developed a set of indicators using the supervisory reporting data that it intends to monitor on an ongoing basis.
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