This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues …' reporting incentives played a key role, which has important implications for bank supervision and the new expected loss model …

Bank regulators and academics have long conjectured the beneficial effects of smoothing in loan loss provisions (i … highlight the tradeoff between bank stability and transparency inherent in smoothing loan loss provisions – while proactive …

We estimate a panel error correction model for loan loss provisions, using unique supervisory data on flow of funds …

Banks that follow conditional conservatism in their loan loss accounting treatments benefit from a reduction in crash … risk. The key discretionary loan loss accounting channels are provisions and allowances. We show that conditional … prompting for more conservative bank loan loss accounting does not present a significant opportunity to limit systemic effects …