February 16, 2018 / 9:47 AM / 10 months ago

Swedish central bank sees modest impact on bank capital from IFRS 9 - commentary

A view of an entrance at Sweden's central bank in Stockholm, Sweden, August 12, 2016. REUTERS/Violette Goarant

STOCKHOLM (Reuters) - Sweden’s central bank sees a modest transitional impact of a new accounting standard on regulatory capital ratios for the four major Swedish banks, it said in an economic commentary on Friday.

“In the long-run, if implemented in a sound way by banks, IFRS 9 can contribute to improve banks’ credit risk management, increase transparency on banks’ asset quality and credit risks, and reduce pro-cyclicality through a more timely recognition of credit losses”, Riksbank staff said.

“This may eventually improve financial stability.”

Reporting by Daniel Dickson

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