Commonwealth Bank hikes loan reserves on accounting switch
Provisions rise 38% on July implementation of AASB 9
The Commonwealth Bank of Australia (CBA) increased loan-loss reserves by A$1.1 billion ($785 million) as fresh accounting rules came into effect.
Cash set aside to cover shaky loans grew 38% to A$3.8 billion as the bank switched to the AASB 9 accounting standard on July 1. The new regime is the Australian equivalent of IFRS 9, which applies to banks that subscribe to international accounting
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