IFRS 9 Implementation from the Perspective of Banking Supervisors
Technical Notes and Manuals, March 27, 2026
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Bibliographic details
- Authors: Rachid Awad, Luc Riedweg
- Published: March 27, 2026
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9798229036580.005
Overview and scope
- Authors: Rachid Awad, Luc Riedweg
- Publication date: March 27, 2026
- Series: Technical Notes and Manuals No. 2026/004
- Volume: 2026; Issue: 004; Pages: 50
- DOI: https://doi.org/10.5089/9798229036580.005
- Stock No: TNMEA2026004
- ISBN: 9798229036580
- ISSN: 2075-8669
- Subject areas: Bank supervision; Financial regulation and supervision; Financial sector policy and analysis; Financial standards; International Financial Reporting Standards; Procyclicality
Key findings about IFRS 9 benefits and challenges
- Benefits associated with IFRS 9:
- Enhances forward-looking credit risk measurement and provisioning.
- Aligns accounting with expected credit loss approach.
- Main challenges from banking soundness and risk management perspectives:
- Potential for increased procyclicality in credit loss recognition.
- Operational and methodological challenges for banks and supervisors in implementing expected credit loss models.
- Need for sufficient preparation time and sequencing of supervisory tasks.
Role of banking supervisors
- Supervisory responsibilities emphasized:
- Assist in achieving a robust implementation of IFRS 9 through guidance and oversight.
- Sequence key tasks appropriately to ensure preparedness of banks and supervisors.
- Use regulatory provisioning systems as prudential backstops during transition.
Policy recommendations and implementation steps
- Authorities should consider introducing a transition period to:
- Provide sufficient preparation time for banks and banking supervisors.
- Allow appropriate sequencing of key tasks to be completed before full adoption.
- IFRS 9 implementation principles:
- Implement IFRS 9 in a proportionate and sound manner.
- Minimize procyclicality through supervisory measures and transitional arrangements.
- Prudential backstop recommendation:
- Maintain regulatory provisioning systems used as prudential backstops until supervisors have gained sufficient experience with IFRS 9.
Framing and usage
- Intended as Technical Guidance Note; disclaimer states it should not be reported as representing the views of the IMF.
- Views expressed are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
IMF Technical Notes and Manuals No. 2026/004 — "IFRS 9 Implementation from the Perspective of Banking Supervisors", Rachid Awad and Luc Riedweg, March 27, 2026.
Content in this bundle
- Tnmea2026004