November 18, 2024 (NO COMMENTS)

Loans flagged for heightened default risk at Commerzbank jumped by 46.9% in the third quarter, owing largely to the integration of climate and environmental factors into allowance modelling. Loans tagged as stage 2 increased €19.6 billion ($20.7 billion), around €16 billion of which was blamed on transfers from stage 1 due to the new sustainability-related inputs. Under IFRS 9 accounting standards, stage 2 loans are those that have deteriorated since origination, while stage 1 loans are fully