UK banks reveal IFRS 9 capital hit

UK banks predict the switch to a new accounting standard for loans could result in a reduction of their capital ratios of between 12 and 34 basis points and is likely to increase earnings and capital volatility.

IFRS 9 Financial Instruments came into effect in January. In annual reports published in February, five UK banks estimated the impacts the new methodology would have on their capital resources in future earnings periods.

Lloyds Bank predicts a hit to its fully-loaded Common Equity

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