Provisioning policies for non-performing loans: How to best ensure a “clean balance sheet”?
New provisioning rules introduced by IFRS 9 are expected to reduce the procyclicality of provisioning. Heterogeneity among banks in the procyclicality of provisioning may not only reflect the formal accounting rules, but also variation in discretionary provisioning policies. This paper presents empirical evidence on the heterogeneity of provisioning procyclicality among significant banks that are directly supervised by the ECB. In particular, this paper finds that provisioning is relatively procyclical at banks that have i) high loans-to-assets ratios, ii) high shares of non-interest income in total operating income, iii) low capitalization rates, and iv) low total assets. Supervisory guidance provided to banks on how to implement IFRS 9 has mostly been of a qualitative nature, and may prove inadequate to prevent an undesirably wide future variation in provisioning among EU banks.
Grinnanailís
Údar seachtarach
Harry Huizinga
Maidir leis an doiciméad seo
Saghas foilseacháin
Eochairfhocal
- AIRGEADAS
- An Banc Ceannais Eorpach
- AN tAONTAS EORPACH
- An tÚdarás Baincéireachta Eorpach
- beartas rialála
- clár comhardaithe
- cuideachta a bhfuil deacrachtaí aici
- cumhacht feidhmiúcháin agus seirbhís phoiblí
- cuntasaíocht
- eagrú gnó
- foras creidmheasa
- GNÓ AGUS IOMAÍOCHT
- iasacht
- institiúidí airgeadais agus creidmheas
- institiúidí an AE agus an tseirbhís shibhialta Eorpach
- maoirseacht baincéireachta
- POLAITÍOCHT