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The Impact Of Ifrs 9 On The Greek Systemic Banks

Author

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  • Gerasimos ROMPOTIS

    (National and Kapodistrian University of Athens MBA, Greece)

  • Dimitris BALIOS

    (National and Kapodistrian University of Athens, Department of Economics, Greece)

Abstract

This paper examines the impact of IFRS 9 - Financial Instruments on the four systemic banks in Greece upon the transition to the new accounting standard on January 1, 2018. The implementation of the new standard resulted in an average increase in the impairment of financial assets by 1.38 billion euros (or 11%) at the group level and 1.30 billion euros (or 12%) at the bank level. In addition, the impact on average equity on 1/1/2018 was a decrease of 1.38 billion euros (or 16%) at the group level and 1.34 billion euros (or 17%) at the bank level. The impact on the regulatory capital was an average decrease of 0.55% (0.45%) at the group (bank) level, based on the transitional arrangements, or a decrease of 3.84% (3.91%) at the group (bank) level on a fully-load basis. Finally, some key financial leverage ratios were significantly affected by the new standard.

Suggested Citation

  • Gerasimos ROMPOTIS & Dimitris BALIOS, 2024. "The Impact Of Ifrs 9 On The Greek Systemic Banks," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 12(1), pages 167-174, February.
    • Handle: RePEc:scm:ejafbu:v:12:y:2024:i:1:p:167-174
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    References listed on IDEAS

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    1. Abad, Jorge & Suarez, Javier, 2017. "Assessing the cyclical implications of IFRS 9 – a recursive model," ESRB Occasional Paper Series 12, European Systemic Risk Board.
    2. Krüger, Steffen & Rösch, Daniel & Scheule, Harald, 2018. "The impact of loan loss provisioning on bank capital requirements," Journal of Financial Stability, Elsevier, vol. 36(C), pages 114-129.
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