Author : Muzammal Rahim

Accounting standards rarely stir public debate, but in the dynamic banking sectors of East Africa, one regulation – IFRS 9 Financial Instruments – has emerged as a silent, yet powerful, force. Replacing the older “incurred loss” model, IFRS 9 mandates a forward-looking approach to credit provisioning, requiring banks to anticipate potential losses rather than reacting […]

The implementation of International Financial Reporting Standard 9 (IFRS 9) has introduced a paradigm shift in the way financial assets are classified, measured, and, most crucially, impaired. For banks across East Africa, this standard is a double-edged sword, simultaneously strengthening financial resilience through risk-aversion while posing a complex challenge to maintaining traditional growth models. IFRS […]

The Kingdom of Saudi Arabia’s financial sector is a cornerstone of its ambitious Vision 2030, aiming for a diversified, thriving economy. In this dynamic landscape, a crucial, yet often overlooked, factor strengthening the sector’s backbone is IFRS 9 Financial Instruments. Far from being a mere accounting update, IFRS 9 has profoundly reshaped how Saudi banks […]

Saudi Arabia’s financial system is changing quickly under Vision 2030. To make banks stronger and safer, the Saudi Central Bank (SAMA) gives rules that all banks must follow. One important rule is about how banks check for a Significant Increase in Credit Risk (SICR). This is part of the IFRS 9 standard. What is SICR? […]

Saudi Arabia’s banking and financial sector is growing quickly under Vision 2030. The Saudi Central Bank (SAMA) has set strict rules to make the financial system stronger and more transparent. One key rule is IFRS 9, which helps banks manage credit risk better. A main part of IFRS 9 is the idea of Significant Increase […]

Saudi Arabia’s financial sector is undergoing rapid transformation in line with Vision 2030, with the Saudi Central Bank (SAMA) prioritizing transparency, resilience, and global alignment. One of the key frameworks ensuring this stability is IFRS 9 – Financial Instruments, which governs classification, measurement, and impairment of financial assets. Its adoption is central to protecting investors, […]

The introduction of IFRS 9 – Financial Instruments has transformed how organizations in Saudi Arabia recognize, measure, and report financial assets, liabilities, and credit risk. For banks, financial institutions, and corporates in the Kingdom, preparing for an IFRS 9 audit requires not only compliance with the accounting standard but also alignment with regulatory expectations set […]

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 […]

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, implementing, […]