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TREND ANALYSIS OF THE IMMEDIATE POST-ADOPTION EFFECTS OF IFRS 9: AN EMERGING MARKET EVIDENCE
IFRS 9 is a global standard whose impact is ex p ec ted to vary depending on banks’ credit risk approach, s ize, and country of incorporation. Therefore, it is imperative to study the implementation effects of IFRS 9 in all regions in which IFRS 9 has been implemented. Th is p ap er examines the firs t-time pos tad o p tio n effects of IFRS 9 in the Ghanaian banking sector and addresses the gap in empirical academic literature from an African context regarding the implementation effects of IFRS 9. The study found that regulatory capital was adversely affected as a result of an increase in impairment charge at the transition to IFRS 9 on 1st January, 2018. L oan loss provision increased due to timely recognition of ex p ec ted credit losses. Despite the peculiar context of this study, th e res u lts are g en erally consistent with theoretical and empirical literature from the European region. The findings suggest that a p ro p er regulatory and supervisory framework, as well as consistent application of IFRS 9 will be essential to lev erag e o p tim al benefit fro m th e s tan d ard .
Key words: IF R S 9, expected credit loss, regulatory capital, im pairm ent charge, b anks.