Corona crisis triggers global retracement on bank accounting standards

By Tyler Davies
27 Mar 2020

Market participants are already questioning the legitimacy of new ‘expected loss’ accounting rules, with the eurozone, the UK and the US having all now softened the application of their standards for banks during the coronavirus crisis.

The global banking system has only moved to “expected loss” accounting in recent years, owing to political backlash against standards based on “incurred losses”.

In Europe this is captured by the International Financial Reporting Standard (IFRS 9) — which came into force in 2018 — while in ...

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