## IFRS 9 Implementation from the Perspective of Banking Supervisors

_Technical Notes and Manuals, March 27, 2026_

## Source details

**Canonical URL:** [IFRS 9 Implementation from the Perspective of Banking Supervisors](https://www.imf.org/en/publications/tnm/issues/2026/03/27/ifrs-9-implementation-from-the-perspective-of-banking-supervisors-573772)

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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

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### 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.*

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_Source: https://www.imf.org/en/publications/tnm/issues/2026/03/27/ifrs-9-implementation-from-the-perspective-of-banking-supervisors-573772_