EU banks with thinnest buffers tap heftiest IFRS 9 capital add-backs

EBA data shows lenders whose capital benefitted most from transitional loan-loss relief also have skinniest CET1 capital ratios

European Union banks that benefitted the most from IFRS 9 loan-loss relief also have the thinnest solvency ratios, European Banking Authority (EBA) data shows.

The temporary ability to add back to capital to offset provisions booked under the new framework has proved a boon to lenders in the bloc’s economic periphery. At Greece’s Piraeus, for example, such transitional adjustments made up 21% of the bank’s Common Equity Tier 1 (CET1) reserves at end-June, according to the EBA.

  //

 

Those

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.

To continue reading...

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: