IFRS 9 loss rules distracting banks from models and data

Banks neglecting necessary work on data and model governance, warn tech vendors

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Data deficit: "shortcomings" in data governance efforts at banks

Banks are spending too much time worrying about how to model expected losses under International Financial Reporting Standard 9 (IFRS 9) and are neglecting critical issues of data and model governance, warn technology vendors.

In contrast with previous rules, IFRS 9 ushers in an ‘expected loss’ accounting regime for assets subject to impairment, such as loans. This means banks must take provisions for 12-month expected credit losses from the moment an asset is originated or purchased. If the

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