Febriani Cristina Susianti Magdalena, Dwi Martani


Abstract. IFRS 9 brings significant changes in banking industries. IFRS 9 introduces an expected credit loss model that has an impact on loan loss provisions. This study examines loan loss provisions and discretionary loan loss provisions before and after the adoption of IFRS 9. This study uses a sample of banks in European countries and employs univariate analysis to test developed hypotheses. Our results suggest there is no significant difference in loan loss provisions and discretionary loan loss provisions after the adoption of IFRS 9. The findings of this study help standard setters and regulatory for the future development standard by showing the effect of IFRS 9 on loan loss provisions.

Keywords: IFRS 9, Loan Loss Provisions, Discretionary, Banks, Europe

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