IFRS 9 to drive regulatory capital volatility, experts warn

Banking Book Risk Summit: Expected credit loss accounting will be subjective and confusing

market volatility

Attempts to soften the regulatory capital impact of a new accounting framework will do little to address ongoing capital volatility and confusion caused by the use of expected credit loss models, capital management experts have warned at the first annual Banking Book Risk Summit.

"Fundamentally, it is a huge and poorly understood change in banks' financial accounting. For a big chunk of assets on the balance sheet it is going to be hard for the market to understand the numbers, as the modelling

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