IFRS 9 poses credit risk model dilemma for Asian banks

New accounting standard requires tough data upgrade, but capital incentives are weakening

numbers-data-confusion-getty
Tall order: IFRS 9 requires sufficient historical data in a usable format that can be compared regularly

The direction of travel at the Basel Committee in recent years has been to reduce the capital incentives for banks to invest in internal models, but new accounting standards are pushing in the opposite way. In Asia, the problem is whether the historical data and internal infrastructure are sufficient to allow banks to derive maximum benefit from implementing the new International Financial Reporting Standard 9 (IFRS 9) for measuring the value of financial assets.

National Australia Bank (NAB)

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: