ESMA publishes Report on Expected Credit Loss disclosures of banks

ESMA Guidelines and Recommendations

Date: 31 January 2022
On 15 December 2021, the European Securities and Markets Authority (ESMA) published its Report on the application of the IFRS 7 Financial Instruments: Disclosures (IFRS 7) and IFRS 9 Financial Instruments (impairment requirements) (IFRS 9) requirements regarding banks’ expected credit losses (ECL). ESMA has identified room for improvement in the level of compliance, comparability and transparency in the application of the relevant IFRS requirements.