The economy is made up of different sectors that thrive

towards unified goals. Goals to have an efficient economy to best

serve the people. Among these sectors is the Financial Sector. In
a financial sector, specifically Banking Industry is the
financial services group's foundation. According to Catalino T.
(2021), it focuses on direct saving and lending, whereas the
financial services sector includes investments, insurance, risk
redistribution, and other financial activities. Large commercial
banks, community banks, credit unions, and other organizations
offer banking services. The financial services group's
foundation. It focuses on direct saving and lending, whereas the
financial services sector includes investments, insurance, risk
redistribution, and other financial activities. Large commercial
banks, community banks, credit unions, and other organizations offer
banking services.

While these services include significant transactions that

would affect the economy, a need for a Financial Standard
Reporting that would serve as basis for reporting is a need. In
banking Industry, IFRS 9 is what is followed.
IFRS 9 will align measurement of financial assets with the
bank’s business model, contractual cash flow of instruments, and
future economic scenarios. In addition, the IFRS 9 provision
framework will make banks evaluate how economic and credit
changes will alter their business models, portfolios, capital,
and the provision levels under various scenarios.
Given the IFRS 9 requirements in terms of classification,
measurement, and impairment calculation and reporting, banks
should expect to be required to make some changes to the way they
do business, allocate capital, and manage the quality of loans
and provisions at origination. Banks will face modeling, data,
reporting, and infrastructure challenges in terms of both:
1. Reassessing the granularity (e.g., facility-level provisioning
analysis) and/or credit loss impairment modeling approach (e.g.,
consistency regarding the definition of default between Basel and
IFRS 9 models).
2. Enhancing coordination across their finance, risk, and business
units.

Effectively addressing these challenges will enable bank

boards and senior management to make better-informed decisions,
proactively manage provisions and effects on capital plans, make
forward-looking strategic decisions for risk mitigation in the
event of actual stressed conditions, and help in understanding
the evolving nature of risk in the banking business. In the end,
a thoughtful, repeatable, consistent capital planning and
impairment analysis should lead to a more sound, lower-risk
banking system with more efficient banks and better allocation of
capital.

To help minimize the challenges faced by financial

institutions when transitioning to IFRS 9, we conducted the
Moody's Analytics 2015 IFRS 9 Survey to give practitioners a
snapshot of the "current state" of the industry. Moody's
Analytics has also included a series of comments on best
practices and industry trends.

There are top companies that made up the Banking Industry.

In the Philippines prominent companies includes, Union Bank of
the Philippines, J.P Morgan, Manulife, Metropolitan Bank and
Trust and others. While it is true that there are many client
companies, this paper will focus its discussion on one financial
institution which is the Banco De Oro (BDO).