The effectiveness of IFRS 9 transitional provisions in limiting the potential impact of COVID-19 on banks

The purpose of this paper is to assess the effectiveness transitional provisions for impact International Financial Reporting Standard 9 (IFRS 9) as a supervisory tool strengthen bank’s capital base. new IFRS are significant banking measure so-called Capital Requirements Regulation (CRR) Quick Fix mitigate possible adverse effects COVID-19 pandemic on banks. With discharge rules, supervisor aims banks’ regulatory in order ensure supply credit households and companies at all times. Based published disclosure reports 107 European banks reporting dates end 2019 June 2020, our study analysed how many already apply transition whether there geographical focusses what extent use CRR adjustments. To best knowledge, first empirical analysis which original arrangements extension its has their common equity Tier 1 (CET1) capital. results interest regulators, bank managers analysts alike, they fundamentally demonstrate particular tool.