New accounting rules to challenge banking industry: ECB's Nouy

The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank's supervisory chief said on Tuesday.

"The completion of this accounting standard as one of the responses to the financial crisis will bring major changes and challenges to the industry, mainly regarding the implementation of the new expected loss model," said Danièle Nouy, chair of the ECB's banking supervisory arm.