DHAKA, March 8, 2026 (BSS) - The Bangladesh Bank (BB) today issued 
comprehensive implementation guidance for IFRS 9 'Financial Instruments', 
marking a significant step in aligning the nation's banking sector with 
international accounting standards. 

To this end, the central bank today issued a circular.

According to the circular, BB devises a roadmap for the banks and provided 
preparatory instructions in implementing IFRS 9 Financial Instruments by 2027 
through the mentioned circular. 

The roadmap was segregated in three phases and according to the road map, 
Bangladesh Bank is needed to issue guidance for banks in implementing IFRS 9 
at the beginning of the Phase II. 

As per roadmap, Bangladesh Bank has prepared "Guidance for banks in 
implementing IFRS 9 Financial Instruments" and decided to issue it herewith. 

According to the Bank Company Act, 1991 section 38, as a "Public Interest 
Entity" defined by Financial Reporting Council (FRC), all the banks are 
needed to follow financial reporting standards as per Financial Reporting 
Act, 2015. 

Moreover, according to the gazette published by IFRC in November 2, 2020, all 
the Public Interest Entity (PIE) must comply with the conceptual framework 
for financial Reporting as well as International Financial Reporting 
Standards (IFRS) as per section 44 of Financial Reporting Act, 2015.

The objective of this guidance is to ensure banks take steps to comply with 
the financial reporting requirements outlined in IFRS 9. 

However, this Implementation Guidance is not intended to cover all areas of 
IFRS 9. Instead, it focuses on critical areas of the accounting standard. 

Thus, this guidance is considered to be the minimum requirements for 
implementing IFRS 9 for banks. On the other hand, The Basel Committee on 
Banking Supervision issued Guidance on credit risk and accounting for 
expected credit losses in December 2015. 

It is recommended to the banks, to which this Implementation Guidance 
applies, to adopt the principles contained therein.

This Implementation Guidance shall be applied to the funded and non-funded 
credit facilities by January 2028. 

The application of this Guidance to all other financial instruments under 
IFRS 9, such as investment securities, shall be adopted by January 2029. 

Bangladesh Bank will issue directives (e.g. on CIB reporting, additional 
reporting template etc.) from time to time as deemed necessary.

Bangladesh Bank will provide guidance and clarification to banks during the 
implementation of their IFRS 9 frameworks in accordance with this 
Implementation Guidance. Banks should correspond exclusively from a dedicated 
official email.

This directive has been issued by Bangladesh Bank in exercise of its power 
conferred on it under section 49(1) (cha) of the Bank Company Act, 1991.