Basel Committee to retain provisioning treatment as IFRS 9 launches
Committee admits differences across countries are likely to remain in the interim
The Basel Committee on Banking Supervision has decided to retain its current regulatory treatment of provisioning, despite disparities between jurisdictions, while the new International Financial Reporting Standards (IFRS 9) launch.
IFRS 9 will introduce the expected credit losses (ECL) approach to provisioning from January 2018, replacing the current incurred losses approach. This may cause banks’ capital ratios to decline and loan loss provisioning to rise.
The regulatory capital treatment
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