Dynamic Provisioning

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 ant...

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Bibliographic Details
Main Author:	Saurina, Jesus
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING STANDARD ACCOUNTING STANDARDS ACCURATE INFORMATION AGENCY PROBLEMS ASSETS BALANCE SHEET BALANCE SHEETS BANK FOR INTERNATIONAL SETTLEMENTS BANK MANAGEMENT BANKING CRISIS BANKING SYSTEM BANKS BANQUE DE FRANCE BUSINESS CYCLE CENTRAL BANK CENTRAL BANKING CONSUMER CONSUMER DURABLES CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT CRUNCH CREDIT EXPANSION CREDIT GROWTH CREDIT LOSS CREDIT LOSSES CREDIT POLICIES CREDIT RISK DEDUCTIBLE DEPOSIT DEPOSIT INSTITUTIONS EARNINGS EMERGING ECONOMIES FAIR VALUE FINANCIAL CRISIS FINANCIAL INTERMEDIATION FINANCIAL POSITION FINANCIAL POSITIONS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SERVICES FINANCIAL SERVICES AUTHORITY FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL POLICIES GLOBAL BANKING INCREASE IN INCOME INDIVIDUAL BANKS INDIVIDUAL LOAN INDIVIDUAL LOANS INFORMATION ABOUT CREDIT INFORMATION ON CREDIT INSTRUMENT INVESTMENT BANKS INVESTMENT PROJECTS JURISDICTIONS LENDERS LENDING CYCLE LOAN LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO LOAN PORTFOLIOS MACROECONOMIC VOLATILITY MONETARY POLICY MORAL SUASION MORTGAGES NET OPERATING INCOME NONPERFORMING LOANS OVERDRAFTS POLICY RESPONSES PRIVATE CREDIT PRIVATE CREDIT BUREAUS PROBABILITIES PROBABILITY PROBABILITY OF DEFAULT PROBLEM LOANS PRUDENTIAL REGULATION PUBLIC POLICY REALITY CHECK RECESSION RECESSIONS RESERVE RESERVES RISK PREMIUMS RISK TAKING SECURITIES SOLVENCY SOURCE OF INFORMATION SPECIALIZED BANKS TAX TAX TREATMENT TIER 2 CAPITAL TRADING TYPE OF LOAN TYPES OF LOAN UNION VALUATION
Online Access:	http://documents.worldbank.org/curated/en/2009/07/11077297/dynamic-provisioning http://hdl.handle.net/10986/10241

id	okr-10986-10241
recordtype	oai_dc
spelling	okr-10986-102412021-04-23T14:02:49Z Dynamic Provisioning Saurina, Jesus ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING STANDARD ACCOUNTING STANDARDS ACCURATE INFORMATION AGENCY PROBLEMS ASSETS BALANCE SHEET BALANCE SHEETS BANK FOR INTERNATIONAL SETTLEMENTS BANK MANAGEMENT BANKING CRISIS BANKING SYSTEM BANKS BANQUE DE FRANCE BUSINESS CYCLE CENTRAL BANK CENTRAL BANKING CONSUMER CONSUMER DURABLES CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT CRUNCH CREDIT EXPANSION CREDIT GROWTH CREDIT LOSS CREDIT LOSSES CREDIT POLICIES CREDIT RISK DEDUCTIBLE DEPOSIT DEPOSIT INSTITUTIONS EARNINGS EMERGING ECONOMIES FAIR VALUE FINANCIAL CRISIS FINANCIAL INTERMEDIATION FINANCIAL POSITION FINANCIAL POSITIONS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SERVICES FINANCIAL SERVICES AUTHORITY FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL POLICIES GLOBAL BANKING INCREASE IN INCOME INDIVIDUAL BANKS INDIVIDUAL LOAN INDIVIDUAL LOANS INFORMATION ABOUT CREDIT INFORMATION ON CREDIT INSTRUMENT INVESTMENT BANKS INVESTMENT PROJECTS JURISDICTIONS LENDERS LENDING CYCLE LOAN LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO LOAN PORTFOLIOS MACROECONOMIC VOLATILITY MONETARY POLICY MORAL SUASION MORTGAGES NET OPERATING INCOME NONPERFORMING LOANS OVERDRAFTS POLICY RESPONSES PRIVATE CREDIT PRIVATE CREDIT BUREAUS PROBABILITIES PROBABILITY PROBABILITY OF DEFAULT PROBLEM LOANS PRUDENTIAL REGULATION PUBLIC POLICY REALITY CHECK RECESSION RECESSIONS RESERVE RESERVES RISK PREMIUMS RISK TAKING SECURITIES SOLVENCY SOURCE OF INFORMATION SPECIALIZED BANKS TAX TAX TREATMENT TIER 2 CAPITAL TRADING TYPE OF LOAN TYPES OF LOAN UNION VALUATION 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. 2012-08-13T10:49:41Z 2012-08-13T10:49:41Z 2009-07 http://documents.worldbank.org/curated/en/2009/07/11077297/dynamic-provisioning http://hdl.handle.net/10986/10241 English Crisis Response Note; No. 7 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING STANDARD ACCOUNTING STANDARDS ACCURATE INFORMATION AGENCY PROBLEMS ASSETS BALANCE SHEET BALANCE SHEETS BANK FOR INTERNATIONAL SETTLEMENTS BANK MANAGEMENT BANKING CRISIS BANKING SYSTEM BANKS BANQUE DE FRANCE BUSINESS CYCLE CENTRAL BANK CENTRAL BANKING CONSUMER CONSUMER DURABLES CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT CRUNCH CREDIT EXPANSION CREDIT GROWTH CREDIT LOSS CREDIT LOSSES CREDIT POLICIES CREDIT RISK DEDUCTIBLE DEPOSIT DEPOSIT INSTITUTIONS EARNINGS EMERGING ECONOMIES FAIR VALUE FINANCIAL CRISIS FINANCIAL INTERMEDIATION FINANCIAL POSITION FINANCIAL POSITIONS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SERVICES FINANCIAL SERVICES AUTHORITY FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL POLICIES GLOBAL BANKING INCREASE IN INCOME INDIVIDUAL BANKS INDIVIDUAL LOAN INDIVIDUAL LOANS INFORMATION ABOUT CREDIT INFORMATION ON CREDIT INSTRUMENT INVESTMENT BANKS INVESTMENT PROJECTS JURISDICTIONS LENDERS LENDING CYCLE LOAN LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO LOAN PORTFOLIOS MACROECONOMIC VOLATILITY MONETARY POLICY MORAL SUASION MORTGAGES NET OPERATING INCOME NONPERFORMING LOANS OVERDRAFTS POLICY RESPONSES PRIVATE CREDIT PRIVATE CREDIT BUREAUS PROBABILITIES PROBABILITY PROBABILITY OF DEFAULT PROBLEM LOANS PRUDENTIAL REGULATION PUBLIC POLICY REALITY CHECK RECESSION RECESSIONS RESERVE RESERVES RISK PREMIUMS RISK TAKING SECURITIES SOLVENCY SOURCE OF INFORMATION SPECIALIZED BANKS TAX TAX TREATMENT TIER 2 CAPITAL TRADING TYPE OF LOAN TYPES OF LOAN UNION VALUATION
spellingShingle	ACCOUNTING ACCOUNTING FRAMEWORK ACCOUNTING STANDARD ACCOUNTING STANDARDS ACCURATE INFORMATION AGENCY PROBLEMS ASSETS BALANCE SHEET BALANCE SHEETS BANK FOR INTERNATIONAL SETTLEMENTS BANK MANAGEMENT BANKING CRISIS BANKING SYSTEM BANKS BANQUE DE FRANCE BUSINESS CYCLE CENTRAL BANK CENTRAL BANKING CONSUMER CONSUMER DURABLES CREDIT BUREAUS CREDIT CARD CREDIT CARDS CREDIT CRUNCH CREDIT EXPANSION CREDIT GROWTH CREDIT LOSS CREDIT LOSSES CREDIT POLICIES CREDIT RISK DEDUCTIBLE DEPOSIT DEPOSIT INSTITUTIONS EARNINGS EMERGING ECONOMIES FAIR VALUE FINANCIAL CRISIS FINANCIAL INTERMEDIATION FINANCIAL POSITION FINANCIAL POSITIONS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SERVICES FINANCIAL SERVICES AUTHORITY FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SYSTEM FISCAL POLICIES GLOBAL BANKING INCREASE IN INCOME INDIVIDUAL BANKS INDIVIDUAL LOAN INDIVIDUAL LOANS INFORMATION ABOUT CREDIT INFORMATION ON CREDIT INSTRUMENT INVESTMENT BANKS INVESTMENT PROJECTS JURISDICTIONS LENDERS LENDING CYCLE LOAN LOAN LOSS LOAN LOSS PROVISIONING LOAN LOSS PROVISIONS LOAN LOSSES LOAN PORTFOLIO LOAN PORTFOLIOS MACROECONOMIC VOLATILITY MONETARY POLICY MORAL SUASION MORTGAGES NET OPERATING INCOME NONPERFORMING LOANS OVERDRAFTS POLICY RESPONSES PRIVATE CREDIT PRIVATE CREDIT BUREAUS PROBABILITIES PROBABILITY PROBABILITY OF DEFAULT PROBLEM LOANS PRUDENTIAL REGULATION PUBLIC POLICY REALITY CHECK RECESSION RECESSIONS RESERVE RESERVES RISK PREMIUMS RISK TAKING SECURITIES SOLVENCY SOURCE OF INFORMATION SPECIALIZED BANKS TAX TAX TREATMENT TIER 2 CAPITAL TRADING TYPE OF LOAN TYPES OF LOAN UNION VALUATION Saurina, Jesus Dynamic Provisioning
relation	Crisis Response Note; No. 7
description	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.
format	Publications & Research :: Brief
author	Saurina, Jesus
author_facet	Saurina, Jesus
author_sort	Saurina, Jesus
title	Dynamic Provisioning
title_short	Dynamic Provisioning
title_full	Dynamic Provisioning
title_fullStr	Dynamic Provisioning
title_full_unstemmed	Dynamic Provisioning
title_sort	dynamic provisioning
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2009/07/11077297/dynamic-provisioning http://hdl.handle.net/10986/10241
_version_	1764412370647515136

Dynamic Provisioning

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