Banks struggling with IFRS 9 impairment rules
Firms seek clarity on use of probabilistic scenarios ahead of January 2018 deadline
Banks are struggling to work out how to implement a new accounting standard that forces them to incorporate expected credit losses into the value of financial assets subject to impairment, such as loans.
Uncertainty over how to incorporate the future economic scenarios required by International Financial Reporting Standard 9, or IFRS 9, means quants and credit risk modelling experts are in uncharted waters, with different firms experimenting with different options. The confusion comes despite a
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