Dynamic Provisioning

• Tác giả: Jesus Saurina
• Ngôn ngữ: eng
• Ký hiệu phân loại: 003.2 Forecasting and forecasts
• Thông tin xuất bản: World Bank, Washington, DC, 2012
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 297576
• Chủ đề: 1. ACCOUNTING; 2. ACCOUNTING FRAMEWORK; 3. ACCOUNTING STANDARD; 4. ACCOUNTING STANDARDS; 5. ACCURATE INFORMATION

Tóm tắt

Dynamic loan loss provisions can help deal with procyclicality in banking. By allowing earlier detection and coverage of credit losses in loan portfolios, they enable banks to build up a buffer in good times that can be used in bad times. Their anticyclical nature enhances the resilience of both individual banks and the banking system as a whole. While there is no guarantee that they will be enough to cope with all the credit losses of a downturn, dynamic provisions have proved useful in Spain during the current financial crisis. They could be an important prudential tool for emerging economies, where banks dominate financial intermediation.