As the International Financial Reporting Standard 9 (IFRS 9) deadline inches closer, financial institutions need to act fast in their convergence of functions, technology and models. Bank Rakyat Indonesia (BRI), the largest bank in Indonesia and top ten ASEAN bank for tier 1 capital, is using SAS® Expected Credit Loss to comply with Indonesia’s adaptation of IFRS 9, known as PSAK 71, and ensure long-term flexibility to meet evolving regulations.
After a highly stringent process, BRI selected SAS to help the bank meet regulatory changes across its 12 business segments. BRI will use SAS Expected Credit Loss to ensure fast, efficient risk model implementation as well as for testing and maintenance efforts after the IFRS 9/PSAK 71 implementation deadline in Indonesia.
The IFRS 9/PSAK 71 and its updated standard on credit loss measurement will drastically change how financial institutions estimate, reserve and report on losses. With 100 deployments globally since 2014, SAS has been helping a growing number of banks in ASEAN achieve operational readiness to meet the new accounting standards. Most recently, British multinational Standard Chartered Bank – present in all 10 ASEAN markets – was awarded The Asian Banker Risk Management Award for the implementation of an IFRS 9 solution, for which they used SAS Expected Credit Loss.
Re-disseminated by The Asian Banker