IFRS 9 flings loan-loss provisions haphazardly higher

Under the standard, cash piles for bad loans were expected to ramble. Just not quite so much

Bankers always expected the new IFRS 9 accounting standard to hurl loan-loss provisions higher, in something like a scattered arc. But they’ve been taken aback by just how dispersed and uneven the arc has turned out to be.

“Because of the way internal models are developed, some variability is to be expected, but this is a much bigger variability than I would have anticipated,” says Rastislav