Banks are expecting regulators to finalise transitional rules that could dampen the capital impact of new accounting standards, which are widely expected to result in significantly higher loan-loss provisions.
The impending changes – contained in updated guidelines from the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) – will require banks to use expected rather than incurred-loss models to estimate loan losses. The anticipated rise in
- People moves: SocGen adds in prime services, Deutsche fills new rates hole, HSBC makes model move, and more
- Credit risk quants are hitting the tech gap
- Quant Finance Master’s Guide 2019
- Princeton tops inaugural Risk.net quant master’s ranking
- Does credit risk need an expected shortfall-style revamp?