Basel set to decide on capital relief for accounting changes

Phase-in to IFRS 9 and Cecl needed to avert "a dramatic overnight drop in regulatory capital", say auditors

Step by step
In stages: some supervisors favour a managed implementation over several years

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 loa

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