Some EU banks keep underprovisioning for ECLs

- By Lorenzo Migliorato
- 23 Dec 2021

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Several top European Union lenders continued to underprovision loans relative to regulatory expected credit losses (ECLs) in the second quarter, European Banking Authority (EBA) data shows – a trend that has attracted the regulator’s concerns.

EU rules mandate that when internal model accounting provisions fall below regulatory-parameter ECLs, the difference should be deducted from Common Equity Tier 1 (CET1) reserves.

!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName(

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact info@risk.net to find out more.

You are currently unable to copy this content. Please contact info@risk.net to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@risk.net