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IFRS 9 COMPLIANCE WILL BE REQUIRED IN 2018
In 2018, compliance of IFRS 9 will be required. This regulation will change the forecasting of the probability of loans defaulting and the way it is accounted. This is the most significant change in lending, in a long time.
Why is it a significant change?
Because, creating a credit risk model determining probable default of loans will impact the amount of money to be reserved. The dollar amount to be reserved for probable default could impact your financial institution, both in the profit and loss and reporting and capital requirements. Understanding this impact before starting your 2018 fiscal year is critical to the Board of Directors and Senior Management of the clients you serve.