Financial reports play a vital role in stakeholders' decision-making, making the credibility and relevance of financial information essential. In the banking industry, where credit risk exposure is significant, the adoption of appropriate accounting standards becomes increasingly important. In Indonesia, IFRS 9 has been embraced as PSAK 71. The introduction of IFRS 9 brought a proactive Expected Credit Loss (ECL) model designed to improve the speed and clarity of recognizing credit risk in comparison to the incurred loss model defined by IAS 39. This research investigates how the ECL model is applied under IFRS 9 and its effects on the integrity and consistency of financial reports in the banking industry. Using a conceptual approach through a review of prior research, this study analyzes existing findings on the effectiveness of IFRS 9 in mitigating excessive economic cyclicality and improving financial reporting practices. The findings suggest that IFRS 9 has the potential to enhance financial reporting stability when implemented appropriately. This study is expected to contribute theoretically by expanding the literature on the implementation of IFRS 9 in the banking industry.