Naslov
HAS THE IMPLEMENTATION OF EXPECTED CREDIT LOSS MODEL AFFECTED ON FINANCIAL POSITION AND PERFORMANCE OF BANKING SECTOR IN CROATIA?

Autori
Perčević, Hrvoje

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
9th INTERNATIONAL SCIENTIFIC SYMPOSIUM / Leko Šimić, M. ; Crnković, B. - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2020, 1222-1236

ISBN
978-953-253-164-0

Skup
9th International Scientific Symposium Region, Entrepreneurship, Development 2020 (RED 2020)

Mjesto i datum
Osijek, Hrvatska, 04.06.2020. - 05.06.2020

Vrsta sudjelovanja
Ostalo

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
expected credit loss, financial instruments, IFRS 9, banking sector, impairment losses

Sažetak
Expected credit loss model has been implemented in International Financial Reporting Standard 9 – Financial Instruments which started to apply in banking sector in Croatia from 01. January 2018. Since this model, in comparison to ex incurred loss model, requires the assessment of expected credit losses for debt financial instruments and their recognition in financial statements, it is expected that the implementation of expected credit loss model has a certain impact on financial position and performance of banking sector as well as on other companies with significant portion of debt financial instruments in their assets’ structure. This paper aims to analyse and to compare the impairment losses recognized under ex incurred loss model with impairment losses recognized under expected credit loss model in order to identify its impact on financial position and performance in banking sector in Croatia. The data needed to conduct the research are collected from publically available bulletins of banks issued by Croatian National Bank. In order to achieve the basic aim of the paper, methods of descriptive statistical analysis are used. The initial implementation of expected credit loss model had negative effects on financial position and performance of banking sector in Croatia due to the additional recognition of loss allowances and impairment losses. The research results regarding the subsequent effects of expected credit loss model suggest that the expected credit loss model had positive impact on financial position and financial performance in banking sector in Croatia after the first year of its appliance. But this results have to be taken with caution since Croatian banks have reversed the large amounts of impairment losses in 2018 when expected credit loss model have started to apply.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA