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Banque Misr picked Moody's Corporation to supervise the application of IFRS 9

Thursday 26 July 2018 07:45 PM

Banque Misr
Banque Misr

By Suhair Mohmed
  Banque Misr picked Moody's Corporation model to guide its attempts at applying the new accounting standard of International Financial Reporting Standards 9 ( IFRS9) which require provisions to be set aside for meeting lending losses.
A committed formed by the state-owned bank is holding talks with the issuer of IFRS the International Accounting Standard Board (IASB) in preparation for sealing final contracts in the next few weeks, according to informed sources.
With it out-rivaling those of Oracle and Standard and Poor's, bid submitted by Moody's was picked by Misr Bank because it includes the provision of software services and IFRS's technical guidelines.
Banque Misr has created risk reserves constituting a 1 percent of total credit risks in line with profits netted in the past fiscal year of 2017-2018 in compliance with the Central Bank of Egypt's regulations.
CBE obligates state-owned banks to apply IFRS as of July 2019 and privately-owned banks as of next December.
With the aim of raising safety, making banks more solvent and prevent the flare-up of a financial crisis in the scale of 2008's crisis, IFRS influences the ways in which the components of a balance sheet is reported and link the assets accounting and debt instruments with risk management activities.