On Wednesday 12 July, the committee on economic and monetary affairs of the European Parliament supported the creation of a five-year phase-in period, to run from January 2018, in the application of the revised international information standard IFRS 9.
The aim is to limit the negative impact of the new standard on banks that would result from an increase in expected credit losses, leading to a fall in capital ratios.
“Non-performing assets should not be added back to the capital, losses...