MANAMA: Banks operating in GCC countries may face lower loan loss requirements under International Financial Reporting Standards (IFRS) 9 rules because these may well be less onerous than current provisioning requirements, says Fitch Ratings.
Under IFRS9, when a loan is first made or acquired, it is assessed for expected losses over an initial 12-month period and an up-front provision is booked automatically, triggering an immediate capital hit .