The International Accounting Standards Board published IFRS9 Financial Instruments in July 2014, a framework that introduces a number of new principles into bad debt provisioning that would require lenders to change the provisioning methodology and possibly some business practices in order to remain compliant.
It is expected that IFRS9 adoption could lead to a material increase in provisions. The IFRS9 framework and key considerations for retail unsecured lending are described in the below high level overview.
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