Results 261 to 270 of about 818,060 (324)

Current expected credit loss model adoption

Contemporary Accounting Research
AbstractThe mandatory switch from the incurred loss model to the more forward‐looking current expected credit loss (CECL) model was originally scheduled to begin in 2020. However, when the COVID‐19 pandemic started in early 2020, US regulators made the switch voluntary.
Aurelius Aaron, Xiaoli Jia, Jeffrey Ng, Janus Jian Zhang   +3 more
openaire   +2 more sources

Current expected credit loss procyclicality: it depends on the model

The Journal of Credit Risk, 2020
The new guidelines for loan loss reserves, current expected credit loss (CECL), were initially proposed so that lenders’ loss reserves would be forward-looking. Some recent studies have suggested that CECL could be procyclical, meaning that loss reserves would peak at the peak of a crisis.
Joseph L. Breeden, Maxim Vaskouski
openaire   +2 more sources

Advanced Risk Consulting Expected Loss Model (ARC ELM): For Current Expected Credit Losses (CECL)

SSRN Electronic Journal, 2017
The ARC ELM is a top-down expected credit loss system that projects the intertemporal effects of both loan default cycles and macroeconomic conditions on credit losses for U.S. banks. The ARC ELM is based on an Ordinary Least Squares (OLS) time series analysis using historical loan loss and macroeconomic data, while, importantly, also maintaining ...
Aaron Lucey, Clifton Chang
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Implications of the Current Expected Credit Loss accounting model

Journal of Banking Regulation, 2017
The Financial Accounting Standards Board approved a controversial accounting change in 2016 that impacts how and when US banks account for loan losses. The accounting modification will require the allowance for loan losses to be sufficient to cover all losses projected over the life of loans and leases originated or purchased.
William C. Handorf
semanticscholar   +3 more sources

Current Expected Credit Loss (CECL) Model and Analyst Forecasts

SSRN Electronic Journal, 2022
We investigate whether the adoption of the Current Expected Credit Loss (CECL) standard by U.S. banks affects three properties of financial analysts’ loan loss provision forecasts: accuracy, dispersion, and coverage.
Samuel B. Bonsall, Brent Schmidt, Biqin Xie   +2 more
openaire   +2 more sources

How Does Loan Loss Accounting Influence Bank Lending? Evidence from the Current Expected Credit Loss (CECL) Model

The Accounting Review
ABSTRACT I explore the real effects of an update in loan loss accounting, the current expected credit loss (CECL) model. Although CECL’s predecessor only required banks to recognize losses after an event that made a loan uncollectible, CECL requires banks to recognize expected lifetime credit losses when originating loans. CECL’s earlier
Hsiang-Chieh Yang
openaire   +2 more sources

The Implicit Taxes of Disclosure Regulations: Evidence from Expected Credit Loss Model Implementation

SSRN Electronic Journal, 2021
Yupeng Lin, Wanrong Xu, Rachel Xi Zhang
openaire   +2 more sources

The Effect of Bank Supervision Standards on the Introduction of the Expected Credit Loss Model

Korean Accounting Information Association, 2022
Jeong Woo Kim, Hyun Joo Lee
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Discussion of ‘Moving toward the expected credit loss model under IFRS 9: Capital Transitional Arrangement and bank systematic risk'

Accounting and Business Research, 2022
The change of the loan loss accounting model in International Financial Reporting Standard 9 (IFRS 9) that took place after the financial crisis came as a result of a long standard-setting process in which different views, sometimes contradictory, had to
Araceli Mora
semanticscholar   +1 more source

MODELING LIFETIME EXPECTED CREDIT LOSSES ON BANK LOANS

International Journal of Theoretical and Applied Finance, 2021
The guidelines of various Accounting Standards require every financial institution to measure lifetime expected credit losses (LECLs) on every instrument, and to determine at each reporting date if there has been a significant increase in credit risk since its inception.
openaire   +2 more sources