As one of the identified weaknesses in the international regulation that contributed to the emergence of the global financial crisis, within international grounds, was the existing requirement in International Financial Reporting Standards (IFRS) for recognition of impairment for "the incurred credit losses" which resulted in their delayed recognition in the financial statements of business entities ("too little, too late"). The International Accounting Standards Board, as part of the new IFRS 9 - Financial Instruments, prescribed a new model for assessment and early recognition of "the expected credit losses" for the life-time of the credit risk exposure. IFRS 9 will become effective starting from 1 January 2018.
In order to improve the capacities of the National Bank of the Republic of Macedonia (NBRM), on 1 and 2 February 2017, a workshop on "IFRS 9 - Financial Instruments, Application for Banks" was held at the NBRM, organized jointly by the NBRM and the Centre for Financial Reporting Reform (CFRR), World Bank Vienna Office. The workshop treated individual aspects of IFRS 9, particularly its application for the banking sector, as well as the comparability and interaction of IFRS 9 with the supervisory approach for assessment and measurement of the expected credit losses for credit exposures of banks. Presenters at the workshop were Mr Pascal Frerejacque, Mr Michael Wells, Mr Shamim Diouman and Mr Gilbert Gelard.
The workshop was attended by employees of the NBRM (primarily from the Supervision, Banking Regulation and Financial Stability Sector), and during the workshop, a panel discussion was organized with representatives of all banks and savings houses in the Republic of Macedonia, during which, the practical aspects, activities and challenges for the implementation of the requirements of IFRS 9 for the banking sector in Macedonia were discussed.
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