Effective from 2018, International Financial Reporting Standards (IFRS – 9) requires banks to make impairment provisions for loans and advances based on expected loss model. Also, Basel guidelines requires banks to provide for expected credit loss. However, IFRS – 9 and Basel Guidelines differ in many aspects. 

Please watch following video for details:

Expected Credit Loss

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.