The modification would be for a long-term positive accounting outcome.
With the IFRS 9 bringing in a new way for banks' reporting starting 2018, its application may cause banks to change their strategies especially in lending, Standard & Poor's reports.
S&P says banks could shift towards shorter-duration loan products from longer term ones to achieve a more favorable accounting income.
Here's more from S&P:
Similarly, we could see a move toward higher pricing on certain loan products (such as corporate loans or mortgages) to compensate for the higher loan provisions that they would attract even if they were not impaired. This could have a widespread market impact if peers sought to make similar adjustments, creating a shift in the supply of credit to the market, the pricing of that credit, and so the related risk-reward profile in some segments of lending.
We could consider such a change in our assessment of a bank's business position. At the extreme, it could even affect our view of a system's industry dynamics, as captured in our banking industry country risk assessment (BICRA) analysis.
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