THE IMPACT OF IFRS 9 IMPLEMENTATION TOWARDS CREDIT RISK BANK EGLARE DURING COVID-19 PANDEMIC CONDITION

• Main Author: Adi Praptama, Dwi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60897
• Institution: Institut Teknologi Bandung

Bank as one of the providers in the financial services industry are basically an organization that forms the foundation of a country's economy, so it is necessary to have good operational standards and must comply with applicable regulations. Regulations which covering business activities, capital structure, financial and accounting and reporting are regulated and issued by relevant institutions to ensure that banks can grow healthier in facing intense business competition. Banks in Indonesia are required to implement accounting standard IFRS 9 since January 1, 2020 with changes in classification and measurement categories, changes in the impairment model from losses that have occurred (incurred loss) to losses that are expected to occur (expected loss) and changes in accounting hedging. In the first year of implementation, the Bank was faced with the global Covid-19 pandemic which resulted in uncertain economic conditions that impacted the Bank's business processes. This forced the government to issue strategic actions which listed in the National Economic Recovery (PEN) document and one of point are concerning about the establishment of CKPN for restructuring debtors issued by the Financial Services Authority. This study focuses on determining the model used for the formation of CKPN based on IFRS 9 and its impact on the Risk Weighted Assets (RWA) of credit and capital adequacy ratios. The analysis carried out is to compare the formation of CKPN between the conditions when it was first implemented and the conditions during the pandemic. Hence, as a result is to ensure that Bank have the ability to maintain sufficient capital to survive and meet regulatory requirements.