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IFRS 9 – expected credit losses recognition: assessing the effects of the new expected credit losses model on the economy

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Resumo:During disturbing financial times, the economy suffers from the lack of provisioning that companies exhibit. Under IFRS 9, regulators intend to mitigate this issue. The following research project provides evidence regarding the interactions between the Economic Cycle, Loans and Provisions plus the adverse effect of the latter on regulatory capital. Moreover, using an empirical approach, it updates existing literature regarding the influence provisions have on the upward and downward movements of the business cycles. Overall, the new standard may contribute to the stability of the economy but is dependent on its consistent and rigorous application by banks
Autores principais:Moutinho, Pedro Miguel Timóteo de Sousa
Assunto:Provisions Financial stability Regulatory capital IFRS 9 Expected credit losses
Ano:2019
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:During disturbing financial times, the economy suffers from the lack of provisioning that companies exhibit. Under IFRS 9, regulators intend to mitigate this issue. The following research project provides evidence regarding the interactions between the Economic Cycle, Loans and Provisions plus the adverse effect of the latter on regulatory capital. Moreover, using an empirical approach, it updates existing literature regarding the influence provisions have on the upward and downward movements of the business cycles. Overall, the new standard may contribute to the stability of the economy but is dependent on its consistent and rigorous application by banks