The global economic crash of 2008 resulted in some of the largest bankruptcies filed in the world. This highly significant event also shed light on multiple discrepancies in unstable loan sanctioning and poor crediting decisions made by various large institutions that continues to haunt the financial sector. Today, all banks, credit unions, and other financial organizations have an obvious interest to avoid a repetition of the 2008 collapse. Our interest in developing this unique product was to enable better decision-making abilities for financial institutions.
IFRS9 features a logical model for classification and measurement, forward looking "expected loss" impairment model, and a reformed approach to hedge accounting.