Experts emphasised the importance of robust modelling, reliable data, and coordination between risk and finance to effectively implement International Financial Reporting Standards 9 and restore confidence in the banking sector, said a press release.聽
They highlighted that building technological resilience, enhancing governance and investing in data infrastructure can help banks ensure compliance and improve their financial and operational sustainability.
The Institute of Chartered Accountants of Bangladesh organised a webinar titled 鈥業mplementing IFRS 9: Global Insights and Bangladesh Perspectives鈥� on Tuesday, where industry professionals highlighted several critical challenges in implementing the standard.
Md Kabir Ahmed, deputy governor of the Bangladesh Bank, attended the webinar as chief guest.聽
Kabir said that implementing IFRS 9 marked a significant shift for Bangladesh鈥檚 growing financial sector.
鈥業t enables financial institutions to be better prepared for potential future losses and more resilient to economic shocks,鈥� he added.
Ahmed further noted that collaborative efforts between regulators and professional bodies are essential for designing policies that are both sound and practical.
During the session, NKA Mobin, president of ICAB, emphasised that adopting and implementing IFRSs was essential for enhancing transparency, financial stability and attracting international investors.
Mobin also underscored the importance of collaboration among regulators like the Bangladesh Bank, BSEC and the Financial Reporting Council, as well as the vital role of banks and financial institutions in ensuring compliance.
During the keynote presentation, Ernst & Young partner Rajith Perera highlighted the challenges banks faced in estimating Expected Credit Losses.
He pointed out that many banks lacked robust models for determining Probability of Default (PD) and Loss Given Default (LGD).
Additionally, Sk Ashik Iqbal from Nurul Faruk Hasan & Co stressed the importance of transitioning to the ECL framework for the survival of many banks.
He warned that weak modelling and inconsistent definitions could lead to increased confusion in the industry.
Experts recommended a multi-pronged approach, promoting investments in automation technology, enhanced governance frameworks, revised portfolio segmentation, and improved data infrastructure for better reporting.聽
