This paper aims to quantify the impact of the policies established by IFRS (International Financial Reporting Standards) 9 regarding the recognition and measurement of financial instruments and derivatives on the sustainability and financial performance of Romanian credit institutions. The results show a positive significant impact on performance when the evaluation is made at fair value through profit and loss and a negative one when is made through elements of other comprehensive income. While the expected credit loss policy is essential to underpin prudential policy, it also brought some financial instability for the sampled institutions.
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Grosu et al. (2024) studied this question.
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