Central Bank unveils new guidelines for bailout lenders
BAILED-out banks will have to recognise losses sooner and significantly increase the amount of information they publicly disclose about their loans under new guidelines unveiled by the Central Bank yesterday.
AIB, Bank of Ireland and IL&P will all be covered by the new regime, which the Central Bank says it "expects" to see implemented in the institutions' 2011 results.
The move had been widely flagged and was referenced in the Central Bank's latest 'Banking Supervision Strategy' framework, published last June.
"We want to see financial statements prepared on a more conservative basis, with the impairment provisioning methodologies better aligned to economic realities," the Central Bank's director of credit institutions supervision Jonathan McMahon said yesterday.
The new rules should allow banks to complete their impairment reviews more quickly and would "encourage greater confidence in published financial statements".