The European Banking Authority (EBA) has published its IFRS 9 roadmap providing a comprehensive overview of planned monitoring activities on IFRS 9 implementation. The EBA also launched an IFRS 9 benchmarking exercise on a sample of institutions aimed at analysing different modelling practices and how IFRS 9 implementation impacts the amount of expected credit losses.
The EBA has clarified its intention to continue monitoring and promoting a consistent application of IFRS 9 as well as working on the interaction with prudential requirements.
The focus of the IFRS 9 benchmarking exercise is to assess whether the use of different modelling techniques and inputs can lead to significant inconsistencies in terms of expected credit losses (ECL) that directly impact own funds and regulatory ratios.
The EBA will continue to engage closely with all concerned stakeholders for the purpose of this exercise and more generally for the purpose of its monitoring work on IFRS9 implementation.