HIGHER BANK ACCOUNTING STANDARD MAY BE DELAYED

Economy February 20, 2019 01:00

By The Nation

Finance Ministry is considering allowing the state-owned banks to delay implementing the new accounting standard IFRS9 by a year to 2021, as most of the banks must revise their system, said a Ministry source recently.



Government Savings Bank’s president and CEO Chatchai Payuhanaveechai said that his bank had already begun to set up a system to meet the IFRS9 standard and could be completed by 2020. But if the Finance Ministry extended the implementation time, it would be better for the bank, said Chatchai.

IFRS9 will impact with the bank’s accounting, as it would have to increase the reserve for non-performing loans about the current level. The bank does not know how by how much it would have to increase the reserve, but its financial results remain strong and it has a lower non-performing loans ration when compared to other banks in the industry, said Chatchai. The new accounting requirements will have less impact on his bank, he said.