Recent debate about the pro-cyclical effects of bank capital requirements, has ignored the important role that bank loan loss provisions play in the overall framework of minimum capital regulation. It is frequently observed that under-provisioning, due to inadequate assessment of expected credit losses, aggravates the negative effect of minimum capital requirements during recessions, because capital must absorb both expected, and unexpected losses...
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INFORMACIÓN
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2001/06/30
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Documento de trabajo sobre investigaciones relativas a políticas
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WPS2619
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1
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1
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2010/07/01
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Do Banks provision for bad loans in good times? empirical evidence and policy implications
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loan loss provision