Template-Type: ReDIF-Article 1.0

Author-Name: Attila Háda
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: hadaa@mnb.hu

Title: Banking Supervisors Tracing the Transition to IFRS 9

Abstract: The paper presents the supervisory approach of the transition to IFRS 9, implemented
in the credit institution sector from 1 January 2018. The author evaluates the
impacts of the transition and describes the IFRS-specific items that require a different
supervisory approach. One of the conclusions of the paper is that transition to IFRS9
had no major influence on credit institutions’ capital adequacy situation. When
assessing the objective of fair valuation and hedge accounting, it may be stated that
those essentially support forward-looking, risk-based supervision. As a result of the
introduction of the new impairment rules, prudential and accounting impairment
approximated each other, but the management of expected losses not sufficiently
covered by impairment is not explicit, and the author also makes a recommendation
for a potential solution.

Classification-JEL: G21, M41, M48
Keywords: IFRS9, banking supervision, impairment, fair valuation, hedge accounting
Pages: 77-111
Volume: 18
Issue: 4
Year: 2019
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-18-4-st4-hada.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:18:y:2019:i:4:p:77-111