Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2020.1804425
IFRS 9 transition effect on equity in a post bank recovery environment: the case of Slovenia
Maja Zaman Grof
Barbara Mörec
orcid.org/0000-0003-4764-8122
Sažetak
On January 1, 2018, IFRS 9 became effective in the EU. It introduced the expected credit loss model to allow for timely recognition of credit losses, estimated not only on the actual credit loss
experience but also on forward looking information related to
current loan portfolio. Although the transition to IFRS 9 should
lead to increased impairments and decrease in banks’ equity, this
effect is ambiguous in the settings characterised by combined
effects of optimistic macroeconomic outlook and strong regulatory intervention related to extensive loan portfolio restructuring.
This paper investigates day-one transition effect of IFRS 9 on level
of loan impairments and total equity of banks in Slovenia,
Eurozone country, which barely averted international bailout in
2013 by extensive state assisted bank restructuring. The comparative analysis is done on banks that transferred deteriorated loan
portfolio to the state’s Bank Assets Management Company and all
other banks. In line with expectations we find that banks without
extensive asset portfolio improvements recognised additional loan
impairments on transition to IFRS 9, whereas the opposite effect
is observed for banks which performed state-assisted loan portfolio restructuring. Our study provides additional insight on the
effect of institutional and regulatory setting on IFRS 9 implementation effects.
Ključne riječi
IFRS 9; bank equity; impairments; bank recovery; case; Slovenia
Hrčak ID:
301185
URI
Datum izdavanja:
31.12.2021.
Posjeta: 345 *