By E. Sakellari
[email protected]
Implementation of new International Financial Reporting Standards for European banks’ regulatory capital will significantly affect the latter’s balance sheets, a report by the European Banking Authority (EBA) stated this week.
In terms of Greece’s four thrice-recapitalized systemic banks, the assessment is that IFRS9 implementation will cost them roughly six billion euros in regulatory capital, mainly through the recalculation of provisions they’ll need to take.
IFRS9 standards will cover Greek banks’ capital by 5 percent in 2018; 15 percent in 2019; 30 percent in 2020; 50 percent in 2021; 75 percent in 2022 and 100 percent in 2023.
