Financial Services Ireland

IFRS 9

ECL modelling under IFRS 9 during the Covid-19 pandemic

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The Covid-19 pandemic has significantly impacted the manner in which banks’ expected credit loss (ECL) models under IFRS 9 Financial Instruments perform in less than benign economic circumstances. Now more than ever, it is critical to have the modelling capabilities to undertake scenario analysis and understand the impact under varying assumptions.

Our latest guidance, which you can download below, explores both the immediate and long-term considerations for maintaining robust and controlled expected credit losses, and provides our latest insights on ECL modelling in the face of this current volatility.

This paper forms part of a recently issued series of publications to assist clients in understanding the impact on accounting practices due to the Covid-19 pandemic:

You can also explore other recent insights and thinking to support you in leading through these volatile times. Don’t hesitate to reach out if you have a question.

Danny Buckley

Banking & Capital Markets, Sector Leader
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IFRS 9 response to COVID-19

Maintaining robust and controlled expected credit losses during the COVID-19 crisis

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