, controlling for banks' abnormal loan loss provisions and realized securities gains and losses, consistent with banks exercising … discretion over DVA to smooth earnings. We further find that banks that record larger loan loss provisions or realized gains and … exercise discretion over DVA to smooth earnings. These findings generally are consistent with banks using loan loss provisions …

Since 2018, banks have implemented the expected credit loss (ECL) model under International Financial Reporting … Standard (IFRS) 9 to estimate loan losses, which replaces the incurred loss model under International Accounting Standard (IAS … loss provisions (LLPs), which provides ample room for managerial discretion. Over the period 2014–2019, I first show that …

The Financial Accounting Standards Board (FASB) recently replaced the “incurred loss” (IL) model of reporting credit … losses with the “current expected credit loss” (CECL) model to improve the timeliness of credit loss information for … relevance of credit loss allowances and their predictive ability for future credit losses, and overall, that CECL allowances …

This paper provides early evidence on the effect of global regulation mandating a switch from loan loss provisioning … disclosures on the first-time impact of the accounting change; we find that a higher impact on loan loss allowances elicits lower …

This article investigates the relationship between discretionary loan loss provisions and bank intangibles among … focus on the role of loan loss provisions. We investigate whether banks increase (decrease) loan loss provisions in response … to risks associated with investment in intangible assets. We find that discretionary loan loss provisions are inversely …