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Mark Vickers, Head of IFRS 9

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Mark Vickers

Head of IFRS 9

A year on from the first implementation of IFRS 9 and there are clearly some recurrent themes emerging across the industry and a recognition of the need for the models to evolve, primarily to help address known weaknesses and promote consistency.

With this in mind, on April 15th 2019, a letter was sent from the PRA to a number of CFOs, providing an update and main thematic findings in relation the implementation of Expected Credit Loss (ECL) models under IFRS 9.

The PRA findings fall into the following four key areas:

  1. Model & Data Limitations
  2. Multiple Economic Scenarios
  3. Significant Increase in Credit Risk
  4. Lifetime of an Exposure

In our new free guide, we discuss the main points highlighted for each of these areas and make suggestions for how firms can begin to tackle the ongoing challenges in a way that satisfies regulatory requirements and fosters continuous improvement in risk management.

You can download the guide for free here now.