MADRID/ LONDON, March 20 (Reuters) - Global banking regulators are in talks about easing an accounting rule to avoid lenders facing ballooning provisions for loans to companies struggling in the coronavirus pandemic, a source directly involved in the discussions said on Friday.
The source said the Basel Committee of banking regulators from the world’s main financial centres is holding a teleconference on Friday afternoon to discuss the accounting rule known as IFRS 9, which is mandatory in the 27 country European Union, Britain and over 100 other countries.
“Let’s agree to kind of freeze the situation,” the source said.
The Basel Committee declined to comment.
Reporting by Jesus Aguado and Huw Jones, editing by Louise Heavens