The Covid-19 pandemic has a big impact on the economy and the banking sector. Since the implementation of IFRS9 in 2018, banks have to take large provisions early on in a crisis. Bank capital will become tighter and consequently banks will be less able to support a speedy economic recovery. Securitisation techniques may help banks address unwanted fluctuations in IFRS9 loan loss provisions. Mike Nawas from Bishopsfield Capital Partners, weighs up the advantages and disadvantages, in an article he published in Dutch together with his colleagues at Nyenrode Business University.
Read the article in Dutch: IFRS-9 kan economisch herstel in de weg zitten