FineIT: Leading IFRS 9 ECL Software Solutions in Pakistan
The Saudi Central Bank (SAMA) has made it a rule that all banks and financial companies in Saudi Arabia must follow IFRS 9. This rule started on January 1, 2018. IFRS 9 is a global accounting standard made to help banks show their true financial position. What is IFRS 9? IFRS 9 stands for International […]
The implementation of International Financial Reporting Standard 9 (IFRS 9) has significantly transformed the landscape of retail lending in Saudi Arabia. Effective from January 1, 2018, this standard introduced a forward-looking Expected Credit Loss (ECL) model, replacing the previous incurred loss approach. This shift has had profound implications for banks, borrowers, and the broader financial […]
Introduction Expected Credit Loss (ECL) modeling has become a critical component of financial risk management for banks worldwide, including those in Saudi Arabia. With the implementation of IFRS 9 accounting standards, Saudi banks are required to estimate credit losses more proactively, which demands robust ECL models. However, many Saudi banks face unique challenges in developing, […]
1. The Rising Regulatory Focus Over the last few years, both the State Bank of Pakistan (SBP) and GCC regulators have been tightening their supervision around IFRS 9. Among the many technical areas under review, one topic is coming up again and again during audits: Effective Interest Rate (EIR). EIR is more than just a […]
IFRS 9 and IAS 39 are both accounting rules. These rules help companies keep track of money they lend, borrow, or invest. But there are big differences between them. Old vs. New IFRS 9 was made to fix the problems in IAS 39. 1. How Money Items Are Grouped (Classification) IAS 39 IFRS 9 2. […]
