A Review on the Probability of Default for IFRS 9

Bank, Matthias; Eder, Bernhard

doi:10.2139/ssrn.3981339

SSRN Journal

2021

DOI: 10.2139/ssrn.3981339

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A Review on the Probability of Default for IFRS 9

Matthias Bank

Bernhard Eder

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2024

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Evaluating the effects of IFRS 9 on Jordanian banks’ credit and financial metrics

Morshed

2024

Banks and Bank Systems

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Adopting International Financial Reporting 9 is critically relevant as it significantly transforms accounting practices, particularly in credit risk management, for banks in Jordan. The primary purpose of this study is to examine the impact of implementing International Financial Reporting 9 on the financial performance and credit risk management practices of Jordanian banks. A quantitative analysis was conducted using the Difference-in-Differences approach and Fixed Effects models on data from 19 banks operating between 2012 and 2022.The results indicate that the adoption of International Financial Reporting 9 led to a substantial increase in loan loss provisions, with a mean increase of 0.25 (t-value = 18.00). This increase in loan loss provisions negatively affected profitability metrics such as Return on Assets and Return on Equity, which showed mean decreases of 0.0857 (t-value = 4.22) post-implementation. Despite the negative impact on profitability, the findings also highlight improvements in financial transparency and stability due to more accurate credit risk assessment.While the adoption of International Financial Reporting 9 imposes operational and financial challenges, it enhances the robustness and clarity of financial reporting in Jordanian banks.

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Evaluating the effects of IFRS 9 on Jordanian banks’ credit and financial metrics

Morshed

2024

Banks and Bank Systems

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A Review on the Probability of Default for IFRS 9

Cited by 1 publication

References 55 publications

Evaluating the effects of IFRS 9 on Jordanian banks’ credit and financial metrics

Evaluating the effects of IFRS 9 on Jordanian banks’ credit and financial metrics

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