Regulatory Alerts2017-11-07 | 12713Implementation of International Financial Reporting Standard 9 (IFRS 9)
Banque du Liban issued Basic Decision No. 12713 (Basic Circular No. 143) mandating Lebanese banks and financial institutions to fully implement International Financial Reporting Standard No. 9 (IFRS 9) on individual and consolidated financial statements starting January 1, 2018. The regulation requires institutions to establish robust business models, classify financial assets into three credit risk stages, and calculate provisions based on Expected Credit Losses (ECL) using historical, current, and forward-looking methodologies. It further outlines transitional mechanisms for sovereign portfolios, foreign currency provisions, COVID-19 related rating relief, and governance oversight by boards, audit committees, and risk management units to ensure compliance by December 31, 2017.