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http://dx.doi.org/10.13106/jafeb.2022.vol9.no8.0145

The Implementation of IFRS 9 in Gulf Banks: A Comprehensive Analysis  

ABUADDOUS, Murad Y. (Accounting Department, Faculty of Business, Al-Balqa Applied University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.8, 2022 , pp. 145-155 More about this Journal
Abstract
Since 2014, the IFRS 9 has been the focus of the attention of many scholars across disciplines. The futuristic prediction of bank loan provision via a flexible ECL model has been observed as a game changer from the prior models offered in IAS 39. This study has two objectives; the first is to examine the impact on loan loss provisions (LLP), nonperforming loans (NPL), and the impairment loan losses (ILL) after the IFRS 9 in gulf banks. The second is to capture any variation in LLP, NPL, and ILL before and after IFRS9. The study used the two-way fixed effect model (TWFE) estimation and the DiD approach to attain its objectives. 54 gulf banks were selected from the periods between 2012 and 2020. The results indicate that LLP has significantly increased after the transition to IFRS 9, while the NPL has significantly decreased. The results did not capture a significant change in ILL after IFRS9 implementation. The results also indicate more consistency in LLP and NPL reporting after implementing the ECL model adopted in IFRS9. The study concluded that ECL model outcomes are in tandem with prior observation worldwide and pointed out some improvement opportunities for the future.
Keywords
IFRS 9; Loan Loss Provisions; Nonperforming Loans; Impairment Loan Losses; Gulf Banks;
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Times Cited By KSCI : 3  (Citation Analysis)
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