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Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS

Author

Listed:
  • Ellen Gaston
  • Mr. In W Song

Abstract

Countries implementing International Financial Reporting Standards (IFRS) for loan loss provisioning by banks have been guided by two different approaches: International Accounting Standards (IAS) 39 and Basel standards. This paper discusses the different accounting and regulatory approaches in loan loss provisioning, and the challenges supervisors face when there are different perspectives and lack of guidance from IFRS. It suggests actions that supervisors can take to help banks meet regulatory and capital requirements and, at the same time, comply with accounting principles.

Suggested Citation

  • Ellen Gaston & Mr. In W Song, 2014. "Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS," IMF Working Papers 2014/170, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/170
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    References listed on IDEAS

    as
    1. Jennifer A. Elliott & Aditya Narain & Ian Tower & José Vinãls & Pierluigi Bologna & Michael Hsu & Jonathan Fiechter, 2010. "The Making of Good Supervision; Learning to Say "No"," IMF Staff Position Notes 2010/008, International Monetary Fund.
    2. Frank Packer & Haibin Zhu, 2012. "Loan loss provisioning practices of Asian banks," BIS Working Papers 375, Bank for International Settlements.
    3. Sarawan Angklomkliew & Jason George & Frank Packer, 2009. "Issues and developments in loan loss provisioning: the case of Asia," BIS Quarterly Review, Bank for International Settlements, December.
    4. Majnoni, Giovanni & Miller, Margaret & Powell, Andrew, 2004. "Bank capital and loan loss reserves under Basel II - implications for emerging countries," Policy Research Working Paper Series 3437, The World Bank.
    5. Mr. In W Song, 2002. "Collateral in Loan Classification and Provisioning," IMF Working Papers 2002/122, International Monetary Fund.
    6. Jennifer A. Elliott & Aditya Narain & Ian Tower & José Vinãls & Pierluigi Bologna & Michael Hsu & Jonathan Fiechter, 2010. "The Making of Good Supervision; Learning to Say "No"," IMF Staff Position Notes 2010/08, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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