Moreover, the adoption of the new accounting standard IFRS9 in 2018 will change loan valuations: banks will have to make provisions for expected losses and no longer only in the event of a default. The new standard will force banks to improve the allocation and assessment of loans and to adopt new criteria to measure credit risk and calculate loan loss provisions.
A key priority now is to rapidly reach – after a too long negotiation period – an agreement on the finalisation of the Basel 3 reform package aimed at reducing the ample variability of risk-weighted assets as calculated by internal models.