BMO braces for SA-CCR, revised securitisation charges
Bank expects C$100m equity hit through introduction of IFRS 16
Regulatory and accounting changes are projected to erode Bank of Montreal’s (BMO) core capital ratio in January 2020.
The lender disclosed that the adoption of the IFRS 16 accounting standard for leases, full implementation of the standardised approach to counterparty credit risk (SA-CCR) and revisions to the securitisation capital framework would sap its Common Equity Tier 1 (CET1) capital ratio by 15 to 20 basis points from its end-October level of 11.4%.
Transitional arrangements to ease
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