To help meet the challenges and complexity of implementing IFRS 9, TMB Bank has appointed global information services company Experian to support its IFRS 9 adoption and compliance efforts ahead of the standard’s global implementation deadline this year – and Thai implementation by January 1, 2019.
International Financial Reporting Standard (IFRS) 9 was developed by the International Accounting Standards Board to plug gaps that were believed to have contributed to the economic meltdown during the 2008 global financial crisis.
Thailand will adopt the local equivalent, TFRS 9, which will apply to all companies and public-interest entities in the Kingdom.
The new standard, which will require companies and banks to recognise and provide for expected credit losses within 12 months from their reporting date, is expected to have a substantial impact on any organisations that have financial aspects, particularly banks.
“IFRS9 brings with it many challenges for banks, with a huge potential to negatively impact profitability. This will have a knock-on effect on consumers and businesses, who may see their mortgage rates go up and access to loans go down,” Dev Dhiman, managing director of Experian Southeast Asia, said on Monday.
“We are excited to be able to support TMB as they develop ways to better meet the challenges from the new standard and help ensure that they can provide the best quality services to their customers,” he added.