We investigate the relationship between the transparency of loan loss provision disclosures and the provisioning … mandatory disclosures of loan loss provisions. Using proprietary data provided by the national supervisor, we are able to … loss provisions to a lesser extent for income smoothing once they are required to disclose their accounting choice. At the …

The Current Expected Credit Loss (CECL) framework represents a new approach for calculating the allowance for credit …, a key implementation element. Our analysis focuses on three major themes: defaults, balances, and credit loss. Our …

- abrupt switches between high- and low-loss phases - from a risk-management perspective. As uncertainty about phase switches … increases, expected losses decouple from unexpected losses, which reflect a high percentile of the loss distribution. Banks that … ignore this decoupling have shortfalls of loss-absorbing resources, which is more detrimental if the portfolio is more …

We investigate the puzzle in the literature that various parametric loss given default (LGD) statistical models perform … accuracy and rank ordering when mean predictions and squared error loss functions are used. Therefore, the findings in the …

smaller net interest margins either report relatively smaller loan loss reserves or less loan losses, even after including …

deductibility of loan loss provisions. Using an international sample of banks, we find that the loan loss provision is increasing in … corporate tax system's encouragement of timelier loan loss recognition: the extent to which future and current loan portfolio … quality deteriorations are incorporated into the loan loss provision is increasing in the tax rate when general provisions are …

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 …

We review the recent academic and policy literature on bank loan loss provisioning (LLP) to identify several advances … smoothing, methodological issues in the bank loan loss provisions literature and the dynamic loan loss provisioning experiment …

From a sample of Islamic banks around the world from 1997 to 2012, this paper examines whether loan loss provisioning … in Islamic banks is procyclical. Our empirical findings highlight that loan loss provisioning in Islamic banks remains … procyclical, although the ‘expected' loan loss model (E-LLM) has been implemented for Islamic banks in several countries. A closer …

determinants of loan loss provision (LLP), which are classified as either discretionary (income smoothing, capital management …