News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Regulation

European Commission eases accounting rules for banks to facilitate lending to businesses

Additional flexibility will now be permitted to banks when applying IFRS 9, the accounting standard on credit loss and risk calculations

European authorities today proposed a relaxation of banking accounting rules to ensure that lenders can continue to extend loans to companies struggling during the Covid-19 pandemic.

The changes come as a survey from the European Central Bank showed a slight tightening of bank lending criteria across the continent, despite rising demand for emergency financing from businesses and political pressure to support the economy.

WSJ Logo