Bank of England & Prudential Regulatory Authority make techie moves on bank regulation, cancelling stress tests etc...this one on an accounting reg called IFRS9 caught my eye -senior bankers told me it obliged them to book non performing loans immediately, reducing lending power 
So the Bank and PRA are telling banks to look to the medium term in applying IFRS9 and the expected losses from companies hit by the virus - forecasts are “challlenging” but should reflect “temporary” nature of shock and significant support/ relief measures annnounced globally...
Ie this is a move to try top get the banking system not to exacerbate the sharp downturn, my taking into account that it is only temporary, in accounting for expected losses. It could be very important.
This complicated but important...
IFRS9 global regulation obliges banks to set aside billions of pounds/ euros/ dollars in allowances for loans where companies miss payments...would have led to notable COVID-19 impact on bank results even next month. Banks told to apply flexibly
IFRS9 global regulation obliges banks to set aside billions of pounds/ euros/ dollars in allowances for loans where companies miss payments...would have led to notable COVID-19 impact on bank results even next month. Banks told to apply flexibly
full document - Ive stressed biz loans in this thread - specific injunction from BoE/ PRA is customers offered 3 month mortgage holiday should not count as a “stage 2” Expected Credit Loss - point where banks accounts would book an expected lifetime loss bankofengland.co.uk/news/2020/marc…
