We examine the incremental predictive ability and information content of analysts' provision forecasts to explore the potential effects of the FASB's new current expected credit loss (CECL) accounting method. Controlling for the recognized loan loss provision, consensus analyst provision...

Based on a linear provision/charge-off association and V-shaped scatter-plots of these variables against nonperforming loan changes, Basu et al. (2020) argue that nonperforming loan changes mis-measure credit quality and linear provision models are mis-specified. They conclude that residual...