IFRS 9 Stress Testing - Lessons learned so far

Incorporating IFRS 9 aspects within forecasting and stress testing is high on the regulatory agenda - so how can you successfully integrate the two?

About this resource

In this short guide, we explore the main challenges that financial institutions are now facing with stress tests and summarise the lessons learned from the first round of the CST conducted under the new accounting standards, as highlighted in the results published by the Bank of England (BOE) in December 2018.

Key highlights

• A brief re-cap on the Bank of England's 2018 CST results and the capital impact of IFRS 9
• Why now is the time to integrate IFRS 9 and Stress Testing
• Best practice guidance on the estimation of ‘stage’ movements through time under stress
• Best practice guidance on the incorporation of macroeconomic information throughout the forecast