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IAS39 Provisioning

Apart from meeting reporting requirements relating to IFRS introduction, implementing provisioning according to IAS 39 and IAS 37 will result in:

  • Convergence of provisioning methodology with the approach used in credit risk management and Basel II, e.g. use of PD, LGD, recovery rates, EAD
  • Better collateral management, ability to analyze collateral efficiency and credit risk measurement
  • More accurate estimation of loan provisions: taking the features of the bank into account in the area of exposures, internal credit risk assessment methods, effectiveness of receivables and collateral collection processes.