This year, 2018, is the first year for FMO to report on the basis of IFRS 9. The new accounting standards and the way it handles private equity investment implies FMO’s annual profit and loss accounts will fluctuate far more strongly. This will require an even more transparent way of reporting and communicating with our stakeholders.
The Supervisory Board has closely monitored the proposed changes to the CRR (“CRR-2”). An issue of concern to us was the original requirement that European banks should have capital reserves equalling their investments in private equity funds investing in developing countries. This would raise unreasonable barriers to much-needed direct investments in developing countries, which is why we welcome the proposed adjustment to exempt multi- and bilateral development banks from this requirement in the final CRR-2 texts.