Dear CFO letter published by Bank of England

Industry News | 18/04/19

Victoria Saporta, Executive Director, Prudential Policy, Prudential Regulation Authority writes a Dear CFO Letter to Chief Financial Officers of selected deposit-takers. The letter sets out the main thematic findings from the PRAs review of written auditor reports received in 2018 which covers the weakness of control and management of information around Expected Credit Loss, a recommendation that material post model adjustments should be incorporated in core models to address IFRS 9’s requirement to consider multiple economic scenarios whilst also highlighting that the Bank of England will be working with firms on various aspects of consistent application of IFRS 9 ECL and expect definitions of SICR and exposure lifetimes to be part of this work.