UK banks under pressure to use IFRS 9 in stress test

Banks unable to calculate impairments under extreme scenarios must answer to regulator

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Under pressure: impairment numbers will almost certainly go higher under stress

UK banks will have to answer to regulators if they are unable to estimate credit stress scenarios in 2017 using new international accounting standards based on expected loss, the Bank of England (BoE) has warned.

The BoE announcement, made on Tuesday (December 6), fell short of industry fears that all banks would have to calculate their 2017 stress-test results using International Financial Reporting Standard (IFRS) 9, which would be likely to cause a larger hit to capital. However, it still

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