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THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

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THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES

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THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Empty THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES

Post by claud39 on Thu May 02, 2019 7:53 am

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES
2019-05-02





THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES JNL06062%20%28Medium%29




Committee discusses
 
Banking supervision of institutions of systemic interest locally
Aspects of space security in operational risk
 Challenges of applying IFRS 9 to Arab banks,

 

HE Dr. Abdulrahman bin Abdullah Al-Humaidi, Director General of the Arab Monetary Fund, inaugurated the 33rd meeting of the Arab Banking Supervision Committee at the Bab Al Qasr Hotel, Abu Dhabi, United Arab Emirates, on May 1 and 2, 2019. The Committee The Board of Governors of Central Banks and Arab Monetary Institutions. Its members include directors and supervisors of banking supervision at central banks and Arab monetary institutions, as well as the Arab Monetary Fund. The meeting of the Committee shall be attended by observers, representatives of the Union of Arab Banks and the Union of Arab Securities Commissions. Representatives of the Basel Committee on Banking Supervision and the IDB Group also attended the meeting.
The Committee will discuss a number of topics at the meeting, the most important of which are banking supervision of institutions of systemic interest locally, the new Basel III credit risk approach, and the challenges of applying IFRS 9 to Arab banks. . The aspects of cybersecurity in the context of operational risks will also be discussed through a review of the experiences of Arab States in this regard and the theme of operational risk frameworks. The program of the meeting also includes the discussion of the techniques of the Blockin and the safety of the financial sector, as well as the subject of the determinants of net interest margin in the banking sector.
It is worth mentioning that the Arab Banking Supervisory Committee aims to achieve many objectives, including follow-up to the implementation of relevant international standards and recommendations, coordination in banking supervision issues, exchange of experiences and experiences among Arab countries, And coordination with the Basel Committee on Banking Supervision and other regional and international financial groups, in addition to working to transfer the viewpoint of Arab countries to the international forums on the issues of banking supervision and financial stability.
The Arab Monetary Fund shall be responsible for the Technical Secretariat of the Commission. Its responsibilities include drafting papers and studies of the Commission, organizing workshops and conferences for senior officials to enhance the exchange of experiences between central banks and Arab monetary institutions, and contributing to providing technical advice to the Arab countries on the subjects of banking supervision, as well as communication and coordination with institutions. And regional and international frameworks on banking supervision issues.





THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES JNL06090%20%28Medium%29


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES JNL06177%20%28Medium%29








https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%86%D8%B8%D9%85-%D8%A7%D9%84%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9-%D8%A7%D9%84%D8%AB%D8%A7%D9%84%D8%AB-%D9%88%D8%A7%D9%84%D8%AB%D9%84%D8%A7%D8%AB%D9%8A%D9%86-%D9%84%D9%84%D8%AC%D9%86%D8%A9-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D9%84%D9%84%D8%B1%D9%82%D8%A7%D8%A8%D8%A9-%D8%A7%D9%84%D9%85%D8%B5%D8%B1%D9%81%D9%8A%D8%A9-1-%D9%88-2-%D9%85%D8%A7%D9%8A%D9%88


Last edited by claud39 on Thu May 02, 2019 8:55 am; edited 1 time in total
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THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Empty IDB IRAQ

Post by claud39 on Thu May 02, 2019 8:00 am

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Slide_006


[size=36]WHY IDB IRAQ[/size]
"Title of Excellence", at International Development Bank for Investment and Finance Iraq, we have become an icon in the "Iraqi Financial Market" by providing value added products and services to our clients. We proudly say "best private bank in Iraq", which has been achieved against all odds. By applying prudent and risk averse measures we hope to gain foot-print through-out Iraq and globally, "Giving Iraq a new Identity".
THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Bankprofile_hdr

Bank's Profile


IDB was established in 2011; with a paid-up capital of 250 billion Iraqi dinars, (equivalent to 210 million US dollars) as of today. The bank is one of the leading banks locally and regionally, in offering commercial banking services to corporate and retail customers. The Bank has a competitive edge in its conclusive electronic banking services offering.
Despite its newness, the bank was able to acquire a significant share of the total domestic trade and banking market, through a network of more than 16 branches and more than 550 employees, covering all major provinces in Iraq, including the Kurdistan region and the Middle Euphrates and southern Iraq, along with a representative office in Beirut and Dubai. The Bank’s branch network will reach 25 branches in 2020 and as per the Board of Directors approved strategy.
The International Development Bank for Investment and Finance’s success lies in the ability of the Board of Directors, more specifically its chairman, Mr. Ziad Khalaf Abed in laying firm foundations and principles, in addition to comprehensive policies and procedures covering the Bank’s wide departments and divisions. Further; IDB adopts complete corporate governance manual as as stipulated by leading practices.
The Bank attained “Issuing and Acquiring” license from both MasterCard and Visa as the first Iraqi Bank to issue all types of electronic cards (debit, credit, pre-paid) from inside Iraq. The Bank today has the largest ATM acquiring network with more than (150) ATMs installed in Iraq in addition to more than (1000) POS. As per the Bank’s Board approved strategy, the ATM network will reach around (300) ATMs and POS will reach (5000) by end of 2019.
It is noteworthy to mention here that the Bank has received the best rating in Iraq according to the join audit conducted by the Central Bank of Iraq in coordination with Ernst & Young as per the CAMELS rating methodology.
The Bank has achieved numerous milestones during the year 2017; we have summarized some of them and as per the below:

  • The Bank has assigned Ernst and Young as the Bank’s external auditors for the years 2017- 2019.

  • The Bank has obtained the PCI Security License making it the first Bank In Iraq to obtain such a license.

  • The Bank has continued its investment and development in its mobile banking application through the provision of additional services, most notably the ability to execute internal transfers (RTGS) within Iraq through this application making IDB the first Bank in Iraq to offer this service.

  • The Bank has successfully developed and expanded its retail credit banking service offerings by launching new products such as mobile financing, travel loan and other tailored made products targeting SMES.

  • The Bank has made extensive investments and developments in its IT infrastructure and information technology systems in relation to AML/CFT & compliance and as per CBI recent requirements.

  • The Bank successfully completed the interface of the “World Check” filtering software with its core banking solution.

  • The Bank has implemented a modern risk assessment mechanism for customer risk profiling and has been included in the bank’s due diligence procedures when opening bank accounts to customers.

  • The Bank has insured all of its fixed assets as cash in vault and cash in transit through obtaining the Bankers Basket Bond from the best international reinsurance companies.

  • The Bank participated actively in the SMEs Financing Initiatives stipulated by the Central Bank of Iraq through the financing of projects exceeding 3 billion Iraqi dinars during 2016 and in various provinces in Iraq.

  • The Bank has entered into a strategic partnership with Harvard Training and Rehabilitation Organization to continue investing in human resources through continuous training courses in line with the skills required for each employee and according to the requirements of the Central Bank of Iraq.



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THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Empty IFRS 9 Will Significantly Impact Banks’ Provisions and Financial Statements

Post by claud39 on Thu May 02, 2019 8:38 am

[size=45]IFRS 9 Will Significantly Impact Banks’ Provisions and Financial Statements[/size]


By Cayetano Gea-Carrasco


MAY 2015
AS PUBLISHED IN: MOODY'S ANALYTICS RISK PERSPECTIVES | RISK DATA MANAGEMENT | VOLUME V | MAY 2015
 ENTERPRISE RISK

International Financial Reporting Standard 9 (IFRS 9) will soon replace International Accounting Standard 39 (IAS 39). The change will materially influence banks’ financial statements, with impairment calculations affected most. IFRS 9 will cover financial institutions across Europe, the Middle East, Asia, Africa, and Oceania.
IFRS 9 will align measurement of financial assets with the bank’s business model, contractual cash flow of instruments, and future economic scenarios. In addition, the IFRS 9 provision framework will make banks evaluate how economic and credit changes will alter their business models, portfolios, capital, and the provision levels under various scenarios.
Given the IFRS 9 requirements in terms of classification, measurement, and impairment calculation and reporting, banks should expect to be required to make some changes to the way they do business, allocate capital, and manage the quality of loans and provisions at origination. Banks will face modeling, data, reporting, and infrastructure challenges in terms of both:

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[*]Reassessing the granularity (e.g., facility-level provisioning analysis) and/or credit loss impairment modeling approach (e.g., consistency regarding the definition of default between Basel and IFRS 9 models).

[*]Enhancing coordination across their finance, risk, and business units.

[/list]

Effectively addressing these challenges will enable bank boards and senior management to make better-informed decisions, proactively manage provisions and effects on capital plans, make forward-looking strategic decisions for risk mitigation in the event of actual stressed conditions, and help in understanding the evolving nature of risk in the banking business. In the end, a thoughtful, repeatable, consistent capital planning and impairment analysis should lead to a more sound, lower-risk banking system with more efficient banks and better allocation of capital.
To help minimize the challenges faced by financial institutions when transitioning to IFRS 9, we conducted the Moody's Analytics 2015 IFRS 9 Survey to give practitioners a snapshot of the "current state" of the industry. Moody's Analytics has also included a series of comments on best practices and industry trends.


Survey Findings: Implications for Financial Institutions



IFRS 9 will affect the business models, processes, analytics, data, and systems across several dimensions.

CAPITAL, LENDING, UNDERWRITING, AND ORIGINATION



  • Provision levels are expected to substantially increase under IFRS 9 versus IAS.

  • Further equity issuances may be needed, with the potential for greater pro-cyclicality on lending and provisioning owing to IFRS 9. Capital levels and deal pricing will be affected by the expected provisions, but must be evaluated under different economic cycles and scenarios.

  • Banks will have to estimate and book an upfront, forward-looking expected loss over the life of the financial facility and monitor for ongoing credit-quality deterioration.

  • Rating and scoring systems may have to be updated, especially for those banks without Internal Ratings-Based (IRB) models.




ASSET RECLASSIFICATION, RECONCILIATION, AND MEASUREMENT



  • Banks will need to reclassify assets and reconcile them with IAS. They will also need to map products that can be categorized before the calculation (contractual cash flow test) or create a workflow to capture the purpose (business model test). An additional effort could be required to identify those products that can be considered out of scope (e.g., short-term cash facilities and/or covenant-like facilities).

  • Institutions will have to align, compare, and reconcile metrics consistently (e.g., Basel vs. IFRS 9).




CROSS-COORDINATION ACROSS RISK, FINANCE, AND BUSINESS UNITS



  • Financial institutions will have to coordinate finance, credit, and risk resources for which current accounting systems are not equipped.




CREDIT IMPAIRMENT CALCULATION AND VALUATION



  • The IFRS 9 provision model will make banks evaluate, at origination, how economic changes will affect their business models, capital plans, and provisioning levels.

  • A methodology to calculate a forward-looking measurement will have to be developed and/or updated (e.g., transformation from TTC to PiT), while the cash flow valuation analysis must be scenario-driven.

  • IFRS 9 will affect the existing documentation and hedge accounting frameworks.




DATA, SYSTEMS, PROCESSES, REPORTING, AND AUTOMATION



  • Systems will need to change significantly to calculate and record changes requested by IFRS 9 in a cost-effective, scalable way.

  • Data requirements will increase to meet IFRS 9-related calculations and ongoing monitoring.

  • Retrieval of old portfolio data will also be needed, especially for the transactions originated before the A-IRB models have been introduced.

  • IFRS 9 impairment calculation requires higher volumes of data than IAS, which may substantially increase the performance and computational requirements of a credit-loss impairment calculation engine.

  • Financial reporting and reconciliation will be needed to align with other regulatory requirements.




DOCUMENTATION AND GOVERNANCE



  • IFRS 9 makes the provisioning exercise a cross-functional activity, with coordination needed across the risk, finance, accounting, and business functions.





IFRS 9 is a Game Changer



IFRS 9 is the International Accounting Standards Board’s (IASB) response to the financial crisis, aimed at improving the accounting and reporting of financial assets and liabilities. IFRS 9 replaces IAS 39 with a unified standard. In July 2014, IASB finalized the impairment methodology for financial assets and commitments. The mandatory effective date for implementation is January 1, 2018; however, the standard is available for early adoption (e.g., via local endorsement procedures).
IFRS 9 introduces changes across three areas with profound implications for financial institutions:

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[*]The classification and measurement of financial assets

[*]The introduction of a new expected-loss impairment framework

[*]The overhaul of hedge accounting models to better align the accounting treatment with risk management activities

[/list]

Replacing IAS 39 with IFRS 9 will significantly impact banks’ financial statements, the greatest impact being the calculation of impairments:


  • IAS 39 – A provision is made only when there is a realized impairment. This results in “too little, too late” provisions and does not reflect the underlying economics of the transaction.

  • IFRS 9 – Aligns the measurement of financial assets with the bank’s business model, contractual cash flow characteristics of instruments, and future economic scenarios. Banks may have to take a “forward-looking provision” for the portion of the loan that is likely to default, as soon as it is originated.



IFRS 9 has also several common characteristics with the Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) model provisioning framework to be implemented in the US.


Who will be subject to IFRS 9?



IFRS 9 will be required for financial institutions in Europe, the Middle East, Asia, Africa, and Oceania. Specifically:


  • Companies listed on EU stock markets and EU banks must use IFRS reporting standards in preparing their consolidated financial statements.

  • Europe: More than 230 banks (banks of significant importance)

  • Asia, Americas (excluding the US), Oceania, and Africa will be implementing IFRS either through a local-endorsement process or convergence of the respective country-specific standard.

  • Asia and the Middle East: More than 370 banks (banks of significant importance)



Institutions in the US will not be subject to IFRS 9 (GAAP is mandatory for those institutions). However, FASB will introduce a similar analytical framework (CECL) if the current proposal is approved under the proposed form without major modifications.


Industry Snapshot: Current State



With all eyes on IFRS 9, Moody’s Analytics carried out our first IFRS 9 survey to help practitioners better understand how their peers are preparing for the implementation. Overall, banks that participated in the survey are accelerating their planning, budgeting processes, and road-mapping activities for full-scale implementation projects, given the finalization of the IFRS 9 standard.

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Industry-snapshot-current-state




Survey Results



The survey consolidates the views of 28 banks regarding how they are approaching the challenges that IFRS 9 poses. Banks answered 22 questions across five main areas:

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[*]Data

[*]Analytics

[*]Calculation

[*]Reporting

[*]Business uses

[/list]



Section 1 - Participants



Key findings:


  • We gathered our survey results from a significant cross section of institutions of all sizes, proof that IFRS 9 implementation is on the agenda, regardless of the size of the bank.

  • More than 60% of the institutions have operations in the EMEA and APAC regions where IFRS 9 will be mandatory. Institutions in the US will not be subject to IFRS 9 (GAAP is mandatory for those banks).

  • More than 72% of the respondents are from the risk and finance divisions at banks who will also be the major users of IFRS 9 (from an impairment-calculation and financial reporting perspective, respectively).

  • Finance is the main stakeholder given the financial reporting implications of IFRS 9. However, the risk division closely follows finance given its role in the credit-impairment calculation.



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-1


QUESTION 2: IN WHICH REGION(S) DOES YOUR BANK OPERATE?

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-2

SOURCE: MOODY'S ANALYTICS


QUESTION 3: WHAT IS YOUR ROLE IN THE ORGANIZATION?

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-3

SOURCE: MOODY'S ANALYTICS


QUESTION 4: WHO IS THE KEY STAKEHOLDER RESPONSIBLE FOR IFRS 9 IN YOUR ORGANIZATION?


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-4

SOURCE: MOODY'S ANALYTICS



Section 2 – Preparing for 2018



Key findings:


  • More than 82% of banks surveyed have a formal roadmap in place and plan to carry out a parallel run ahead of the implementation deadline.

  • More than 85% of banks surveyed plan to have an operational IFRS 9 solution by 2017 (one year before the mandatory date to be IFRS 9 compliant).

  • More than 40% of the respondents are planning to integrate IFRS 9 requirements in the Basel infrastructure.

  • More than 43% of the respondents have allocated a budget of more than $2 million to meet the IFRS 9 requirements and improve their infrastructure and analytics.




QUESTION 5: DO YOU HAVE A FORMAL IFRS 9 IMPLEMENTAION ROADMAP AT YOUR ORGANIZATION?


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-5

SOURCE: MOODY'S ANALYTICS


QUESTION 6: ARE YOU PLANNING A PARALLEL RUN AHEAD OF THE DEADLINE FOR IMPLEMENTATION?

THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-6

SOURCE: MOODY'S ANALYTICS


QUESTION 7: IF YOU ARE GOING TO BE CONDUCTING A PARALLEL RUN AHEAD OF THE DEADLINE, WHEN WILL YOU NEED AN IFRS 9 SOLUTION?


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-7

SOURCE: MOODY'S ANALYTICS


QUESTION 8: ARE YOU PLANNING TO INTEGRATE YOUR IFRS 9 COMPLIANCE WITH OTHER INITIATIVES? PLEASE STATE WHICH INITIATIVES.



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-8

SOURCE: MOODY'S ANALYTICS


QUESTION 9: WHAT IS THE ALLOCATED BUDGET FOR IFRS 9 IMPLEMENTATION?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-9

SOURCE: MOODY'S ANALYTICS


QUESTION 10: WHAT IS YOUR TIMELINE TO BE IFRS 9 COMPLIANT?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-10

SOURCE: MOODY'S ANALYTICS


QUESTION 11: ARE YOU PLANNING TO INVEST IN DATA RECONCILIATION AND AGGREGATION PLATFORMS FOR IFRS 9 PROVISION CALCULATION, RECONCILIATION, AND REPORTING?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-11

SOURCE: MOODY'S ANALYTICS



Section 3 – Data and Calculation



Key findings:


  • Gathering granular data and developing PD and LGD IFRS 9-compliant models are the major challenges to designing and implementing an IFRS 9 solution.

  • More than 40% of the respondents plan to add the credit impairment and expected loss calculation engine to their Basel risk systems.

  • More than 82% of the respondents plan to leverage their ALM systems to compute amortizing balances.

  • More than 63% of the respondents plan to leverage their Basel IRB models for the credit-loss impairment calculation.

  • More than 50% of the respondents plan to run facility-level calculations for the retail portfolio; more than 85% of the respondents are planning to run this level of granularity for the wholesale portfolio.




QUESTION 12: IF YOU PLAN ON INVESTING IN AN IFRS 9 PROVISIONS ENGINE, TO WHICH SYSTEM WILL IT BE AN ADD-ON?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-12

SOURCE: MOODY'S ANALYTICS


QUESTION 13: PLEASE RANK THE FOLLOWING IN ORDER OF DIFFICULTY (ENCOUNTERED OR EXPECTED) WHEN DESIGNING AND IMPLEMENTING YOUR IFRS 9 PROVISION AND IMPAIRMENT SOLUTION.


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-13


SOURCE: MOODY'S ANALYTICS


QUESTION 14: HOW DO YOU PLAN ON COMPUTING AMORTIZING BALANCES?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-14

SOURCE: MOODY'S ANALYTICS


QUESTION 15: DO YOU PLAN ON BUILDING DEDICATED IFRS 9 PROVISIONING MODELS IN ADDITION TO BASEL MODELS?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-15

SOURCE: MOODY'S ANALYTICS


QUESTION 16: DO YOU PLAN ON USING AN ADVANCED INTERNAL RATING MODEL FOR IFRS 9 PROVISION CALCULATION?


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-16

SOURCE: MOODY'S ANALYTICS


QUESTION 17: DO YOU PLAN ON INCORPORATING SCENARIO CAPABILITIES IN THE IFRS 9 PROVISOIN CALCULATION?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-17

SOURCE: MOODY'S ANALYTICS


QUESTION 18: WHAT IS THE PLANNED BUCKET ALLOCATION AND PROVISIONING CALCULAITON GRANULARITY LEVEL FOR RETAIL?




THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-18

SOURCE: MOODY'S ANALYTICS


QUESTION 19: WHAT IS THE PLANNED BUCKET ALLOCATION PROVISIONING CALCULATION GRANULARITY LEVEL FOR WHOLESALE?



THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-19


SOURCE: MOODY'S ANALYTICS



Section 4 – Planning and Business Benefits



Key findings:


  • Improved timely provisioning planning and better origination practices and capital planning are the major IFRS 9 benefits for the business.

  • More than 68% of the respondents plan to run monthly calculations aligned with the frequency for Basel-related calculations (e.g., RWAs).

  • More than 90% of the respondents are planning to integrate IFRS 9 scenario analysis into capital planning, stress testing, and origination activities.




QUESTION 20: WILL YOU INTEGRATE IFRS 9 SCENARIO CAPABILITIES INTO THE ORIGINATION, CAPITAL PLANNING/OPTIMIZATION, AND STRESS TESTING-RELATED ANALYTICS OR PLATFORMS?




THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-20

SOURCE: MOODY'S ANALYTICS


QUESTION 21: WHAT IS THE PLANNED IFRS 9 PROVISIONING CALCULATION SYSTEM PROCESSING FREQUENCY?


THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-21

SOURCE: MOODY'S ANALYTICS


QUESTION 22: WHAT DO YOU CONSIDER THE OVERALL BUSINESS BENEFITS OF UNDERTAKING AN IFRS 9 INITIATIVE?





THE ARAB MONETARY FUND (AMF) IS ORGANIZING THE 33RD MEETING OF THE ARAB BANKING SUPERVISORY COMMITTEE (AFCA) ON 1 AND 2 MAY 2019 IN ABU DHABI, UNITED ARAB EMIRATES Question-22

SOURCE: MOODY'S ANALYTICS







https://www.moodysanalytics.com/risk-perspectives-magazine/risk-data-management/regulatory-spotlight/ifrs-9-will-significantly-impact-banks-information
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