IFRS 9 hits standardised banks harder than IRB peers

European standardised approach (SA) banks suffered a capital drain from the switch to accounting standard IFRS 9 over eight times larger than that experienced by internal ratings-based (IRB) lenders, a European Banking Authority (EBA) study shows.

Those firms that use their own models to generate capital requirements averaged a 19-basis point drop in their Common Equity Tier 1 (CET1) capital ratios, whereas those using regulator-set formulas under the SA reported an average fall of 157bp.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: