Active Credit Portfolio Management under IFRS 9

As financial institutions are anticipating increased provision levels under IFRS9, most of them also share concerns about increased volatility in earnings, that the new regulation entails, due to the following aspects:

  • The propensity for point-in-time credit assessments to change over time
  • The risk of significant adjustments to the macro-economic outlook, coming with each macro-economic update
  • The risk of assets transitions from stage 1 to stage 2 or 3, that may simultaneously affect correlated segments of the portfolio during economic downturns.
  • Fill out this form to download a presentation from the recent Asia Risk Congress, and learn more about applying this governance framework at the front-office level as part of the credit decision process.