@article{article_422581, title={EXPECTED CREDIT LOSS MODEL BY IFRS 9 AND ITS POSSIBLE EARLY IMPACTS ON EUROPEAN AND TURKISH BANKING SECTOR}, journal={Muhasebe Bilim Dünyası Dergisi}, volume={20}, pages={476–506}, year={2018}, DOI={10.31460/mbdd.422581}, author={Sultanoğlu, Banu}, keywords={UFRS 9,Beklenen Kredi Zararları Modeli}, abstract={<p class="MsoNormal" style="margin-bottom:.0001pt;line-height:150%;"> <b> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">ABSTRACT </span> </b> </p> <p> <b> </b> </p> <b> </b> <p> </p> <p class="Default" style="text-align:justify;line-height:150%;"> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">IFRS
9 <span>– </span> </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:Symbol;" xml:lang="en-us">² </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">Financial
Instruments </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:Symbol;" xml:lang="en-us">² </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">, the replacement of IAS 39 <span>– </span> </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:Symbol;" xml:lang="en-us">² </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">Financial
Instruments: Recognition and Measurement </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:Symbol;" xml:lang="en-us">² </span> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us">
was issued by International Accounting Standards Board in July, 2014 and became
mandatory on January 1, 2018. The significant change implemented in the new
standard is about the “impairment” phase which is based on "Expected
Credit Losses" (ECL) rather than "Incurred Credit Losses". In
this study, the measurement and recognition of allowances for impairment are
explained and then the expected possible qualitative and quantitative effects
of this transition primarily in the European Banking Industry are analyzed and compared
with Turkish Banking Industry. <span> </span>It is
expected that, ECL application by European banks would result in on average 13%-18%
increase in loss provisions <span> and Common Equity
Tier 1 (CET1) and total capital ratio decrease by on average 45-75 basis points
(bps) and 35-50 bps, respectively whereas </span>the total amount of provisions
will be diminishing by 4.1% and will have 33 bps and 21 bps positive impacts on <span>CET1 and </span>total capital adequacy ratio <span> on average, respectively </span> for Turkish banks. </span> </p> <p class="Default" style="text-align:justify;line-height:150%;"> <span lang="en-us" style="font-size:10pt;line-height:150%;font-family:’Times New Roman’, serif;" xml:lang="en-us"> <br /> </span> </p> <p class="MsoNormal" style="margin-bottom:.0001pt;line-height:150%;"> <br /> </p> <p> </p>}, number={3}, publisher={Muhasebe Öğretim Üyeleri Bilim Ve Dayanışma Vakfı}