IFRS 9 in the portfolio

Module 04 / 5 · 60 min

Stage the book, recognise significant increases in credit risk, compute expected credit loss with forward-looking scenarios, and reconcile IFRS 9 with SBB/90/2024 minimum provisions.

In this module you will learn to

Assign loans to IFRS 9 Stage 1, 2 or 3 and explain the effect on the loss allowance
Identify significant increase in credit risk from quantitative and qualitative triggers
Compute expected credit loss as PD x LGD x EAD and weight it across forward-looking scenarios
Reconcile IFRS 9 allowances with SBB/90/2024 minimum provisions and the regulatory reserve

Built on

Erudite Africa course specification: 1.f Loan Portfolio Management, Training Module: Ethiopian Context (October 2026)
Erudite Africa: Ethiopian regulatory register in the Training Module: Ethiopian Context (October 2026)
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/95/2025; NBE Risk Management Guidelines (May 2010); NBE MPC meeting No. 7 press release (July 2026)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
IFRS 9 Financial Instruments
Movable Property Security Right Proclamation No. 1147/2019; the law on property mortgaged or pledged with banks (reported as Proclamation No. 97/1998)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.