Dáil Éireann Debate, Thursday - 8 March 2018
40. Deputy Michael McGrath asked the Minister for Finance the number of Irish regulated banks that have adopted IFRS 9 before the 2018 deadline; his views on the impact its adoption will have on the loan book of Irish regulated banks; his further views on whether it will likely lead to a greater number of loans being classified as non-performing by Irish regulated banks; and if he will make a statement on the matter. [10948/18]
Amharc ar fhreagraIFRS 9 introduces a new regime for impairment provisioning and imposes an Expected Credit Loss approach to provisioning as opposed to the incurred loss approach that was required by IAS 39.
IFRS 9 does not change in any way the definition of Non-Performing Loans (NPLs) introduced by the European Banking Authority (EBA) and as a result should not impact the quantum of NPLs.
IFRS 9 is applicable for accounting periods starting on or after 1 January 2018 for all listed credit institutions. I am informed that the Irish listed banks - AIB, Bank of Ireland and Permanent TSB - have adopted IFRS 9 on 1 January 2018 for their 2018 accounting year. I further understand that they will provide information on the impacts in their annual accounts for 2017 as they are released.
