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Western EuropeDecember 19 2016

Basel Committee consults on IFRS-9 capital bombshell

The new accounting standard IFRS-9 will have a dramatic impact on how banks provision for credit losses, leading the Basel Committee on Banking Supervision to consult on how to manage its effect on capital requirements. Justin Pugsley reports.
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What is happening?

Banks could face a capital shock after 2018. That is the concern voiced by the Basel Committee on Banking Supervision, not about the capital requirements it is prescribing to banks, but the new accounting standards that are to come into force in January 2018.

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