expected losses, as reflected in loan loss allowances, we establish a theoretical link to asset volatility. We document a … sensitivity regarding loan loss allowances has been insufficient, at least since the financial crisis …

1 Introduction -- 2 IFRS 9 and the Expected Credit Loss Model -- 3 Covid-19 and European Banks -- 4 Hypothesis …This book examines the effect of Covid-19 on loan loss provisions (LLPs) and earnings management of European banks … Covid-19 affects banks’ use of discretion when accounting for loan loss provisions. She finds that during Covid-19 banks use …