Loan loss reserves
Asia Risk Congress 2011: ‘Strong baseline supervision’ a domestic priority, says CBRC head
Chinese banking watchdog director-general Luo Ping says China should continue with its conservative regulatory approach, which insulated it against the worst effects of the global financial crisis
New loan-loss reserve requirement under Basel III set to crimp profits at Chinese banks
A new 2.5% minimum loan-loss reserve requirement to be implemented in China under Basel III is likely to reduce the ability of banks to distribute profits to shareholders
Credit expert findings should help revise new impairment standard, says IASB
A proposed new approach to loan loss accounting is proving a tough nut to crack, but standard-setters say progress has been made.
IASB positive about progress on new loan loss standard as consultation ends
The findings of a group of credit risk experts should help IASB staff find a way to make its proposals operational, board member John Smith tells Risk
No accounting for tastes
The Financial Accounting Standards Board has been robust in its defence of fair-value accounting, and is now set to ruffle regulatory feathers by proposing the approach be expanded to cover all financial instruments. Risk speaks to the standard-setter’s…
Loan loss calculation conundrum
Replacing the incurred loss provisioning model remains high on the agenda of accountants, bankers and regulators. The challenge is to find a way to calculate expected loss that satisfies the diverse objectives of all three camps. Can a compromise be…
Loan loss dynamics
The International Accounting Standards Board unveiled a new expected loss approach in November, following criticisms of the current incurred loss model. But European regulators have declared their preference for dynamic provisioning – and have even…
Raiders of the loss arc
Regulators are looking at ways to remove pro-cyclicality from accounting standards, with some advocating the scrapping of incurred loss models in favour of dynamic provisioning
Sponsor's Article > What are loan loss reserves?
Few things are more frustrating to businesses than to be subjected to contradictory requirements by multiple authorities. Modest inconsistencies are glossed over with little or no harm. David Rowe argues, however, that conflicting definitions of loan…