Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS

Ellen Gaston and In Song

No 2014/170, IMF Working Papers from International Monetary Fund

Abstract: Countries implementing International Financial Reporting Standards (IFRS) for loan loss provisioning by banks have been guided by two different approaches: International Accounting Standards (IAS) 39 and Basel standards. This paper discusses the different accounting and regulatory approaches in loan loss provisioning, and the challenges supervisors face when there are different perspectives and lack of guidance from IFRS. It suggests actions that supervisors can take to help banks meet regulatory and capital requirements and, at the same time, comply with accounting principles.

Keywords: WP; loss; loan; bank; International Accounting standard; impairment loss; Supervisory role; loan loss provisioning; IFRS implementation; recognition model; loss recognition; loss estimate; credit loss; bank supervisor; International Financial Reporting Standards; Loan loss provisions; Credit risk; Credit; Capital adequacy requirements; Global (search for similar items in EconPapers)
Pages: 41
Date: 2014-09-15
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Citations: View citations in EconPapers (33)

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