Dynamic Provisioning: Some Lessons from Existing Experiences
AbstractAfter analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality, this paper reviews the experiences of three countries which have introduced dynamic provisioning as a regulatory tool to limit procyclicality. The case of Spain—the country with the longest experience—is reviewed, as well as those of Colombia and Peru—countries that have recently adopted dynamic provisioning. A number of policy lessons are drawn from that comparison.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 218.
Length: 32 pages
Date of creation: 26 May 2010
Date of revision:
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dynamic provisioning; colombia; peru; spain; bank regulation; procyclical;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-BAN-2010-06-04 (Banking)
- NEP-MAC-2010-06-04 (Macroeconomics)
- NEP-REG-2010-06-04 (Regulation)
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- Morgan, Peter J. & Lamberte , Mario, 2012.
"Strengthening Financial Infrastructure,"
ADBI Working Papers
345, Asian Development Bank Institute.
- Michael G Papaioannou & Joonkyu Park & Jukka Pihlman & Han van der Hoorn, 2013. "Procyclical Behavior of Institutional Investors During the Recent Financial Crisis: Causes, Impacts, and Challenges," IMF Working Papers 13/193, International Monetary Fund.
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