CSRSA Live Webinar - Provisioning Through a Pandemic: Insight from Canadian Banks (EY)

Title: Provisioning Through a Pandemic: Insight from Canadian Banks
Presenter: Shawn Sampson, EY
All Domestic Systemically Important Banks in Canada transitioned to the IFRS 9 accounting standard in fiscal 2018. The IFRS 9 standard requires banks and other financial institutions to calculate their provision for credit losses (PCL) according to a new expected loss model instead of the incurred loss model that existed previously under IAS-39. The COVID-19 pandemic provides a unique opportunity to observe how IFRS 9 functions in an uncertain environment where expectations of future conditions change drastically and rapidly. In this environment, financial institutions have difficulty constructing a consistent narrative in their financial statements quarter-over-quarter as PCL estimates continually shift with changes to macroeconomic and borrower risk rating projections. Distinct challenges posed by model performance, industry borrower relief programs, government support programs and borrower behaviour additionally complicate PCL estimation and subsequent portfolio management. The session will look at key insights from financial statement and supplementary disclosures about how banks have provisioned for credit losses during the pandemic and what we can expect in 2021.

Presenter Bio

Shawn Sampson is an Associate Partner with the Financial Services Risk Management Consulting (FSRM) practice at EY. Based in Toronto, he promotes the effective management of credit risk with a combination of strong analytical skills and practical industry knowledge. Shawn has over eighteen years of experience in the financial services industry having held positions in areas such as credit risk modelling and strategy design, provisioning, portfolio management and stress testing. At EY, he leads a team focused on developing credit risk modelling solutions for originations, account management, collections, forecasting,  IFRS-9 and regulatory capital calculations.  Shawn is an associate of the Society of Actuaries and the Canadian Institute of Actuaries.

Price: Free