UK banks gain capital edge through IFRS 9 transitionals
Four big lenders claim £3 billion CRR-mandated relief
The biggest UK banks reaped £3 billion in capital relief from the use of transitional measures designed to ease the switch to new accounting standard IFRS 9, Risk Quantum analysis shows.
Under the European Union’s Capital Requirements Regulation (CRR), banks are allowed to phase in the effects of expected credit losses (ECL), estimated using IFRS 9 on their Common Equity Tier 1 (CET1) capital.
Four UK banks – Barclays, HSBC, Lloyds and Standard Chartered – currently use these transitional
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