Financial innovation, advantages Over the past decades we have witnessed a huge growth in complex and innovative financial products, including in the over-the-counter (OTC) derivatives markets. According to the latest BIS estimates, the notional value of outstanding OTC contracts exceeded the staggering amount of 615 trillion USD by the end of 2009 1 . I believe that financial innovation has brought us real benefits.
See here. The Banking Crisis – A Decade On  IFRS 9 is a new accounting standard that will be effective from 1 January 2018. It introduces an expected credit losses model (ECL) which may lead to higher impairment provisions and more volatile impairment charges with a consequent impact on capital ratios.