Dynamic Loan Loss Provisioning : Simulations on Effectiveness and Guide to Implementation

This simulation-based paper investigates the impact of different methods of dynamic provisioning on bank soundness and shows that this increasingly popular macroprudential tool can smooth provisioning costs over the credit cycle and lower banks' probability of default. In addition, the paper offers an in-depth guide to implementation that addresses pertinent issues related to data requirements, calibration and safeguards as well as accounting, disclosure and tax treatment. It also discusses the interaction of dynamic provisioning with other macroprudential instruments such as countercyclical capital

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Year of publication:	2012
Authors:	Wezel, Torsten
Other Persons:	Chan-Lau, Jorge A. (contributor) ; Columba, Francesco (contributor)
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Simulation \| Theorie \| Theory \| Kreditrisiko \| Credit risk

Extent:	1 Online-Ressource (59 p)
Series:	International Monetary Fund Working Paper ; No. 12/110
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 1, 2012 erstellt
Other identifiers:	10.2139/ssrn.2055716 [DOI]
Classification:	G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013106733