The convergence of several international initiatives in the field of credit risk management—including the expansion of the Basel Committee Guidelines and the new EU FINREP Regulation—has prompted the revision of the Bank of Spain’s Accounting Circular 4/2004, which has served as the primary reference for our banks’ accounting for all these years.
The new Circular 4/2016, approved by the Bank of Spain last May, will lead to closer alignment with international accounting standards, provide momentum for the IFRS 9 adaptation process, and undoubtedly improve the financial information that Spanish banks provide to users and the market.
