EBA call for simpler IFRS 9 phase-in applauded

Lawmakers aim to fast-track IFRS 9 rules in the revised Capital Requirements Regulation, but are also urged to clarify them

Measures to ease the capital impact of new accounting standards, which include expected credit losses, are being fast-tracked by European lawmakers. However, regulators and market participants are calling for the proposal to provide a simpler way of calculating the relief, which is likely to be particularly important for smaller banks that do not use internal capital models.    “The current capital regime was designed for an incurred loss model, so I think some of the key authors of this tra