Recently, "Financial Technology-companies" (FinTechs) are increasingly changing the financial services industry worldwide and impose considerable challenges for regulators tasked to solve the arising trade-off between sound regulation and innovation support. In this regard, regulatory sandboxes,...

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the "cliff-effect", which refers to sudden...

Recently, “Financial Technology-companies” (FinTechs) are increasingly changing the financial services industry worldwide and impose considerable challenges for regulators tasked to solve the arising trade-off between sound regulation and innovation support. In this regard, regulatory...

IFRS 9 substantially affects the financial sector by profoundly changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of financial stability. We shed light on two effects. First, the "cliff-effect", which...

In response to the financial crisis, the IASB's mission statement of 2015 clarifies that the IASB serves the public interest by developing standards which produce decision useful information for capital providers. Thereby, IFRS are assumed to contribute in the long term to financial stability...

IFRS 9 requires the recognition of expected credit losses from the inception of a financial instrument, resulting in so-called day-one losses. The incorporation of day-one losses caused considerable controversy among the IASB members and its constituents. With a focus on the constituents’...

Accounting standards and prudential regulation are key elements of the financial system and are increasingly seen as complementary concepts despite their divergent objectives. This paper examines the growing convergence of accounting and Basel capital requirements in the wake of the latest...

IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper analyzes the implications of the change from IAS 39 to IFRS 9 in the context of bank resilience. We shed light on two effects. First, the “cliff-effect”, which refers to...