Bank Provisioning and Reserving: A Comparison of Alternatives

12 January 2010

FEE publishes a paper under the title “Bank Provisioning and Reserving: A Comparison of Alternatives”.

The purpose of this paper is to help clarify and explain the meaning of particular terms used in the day to day vocabulary of policy makers, banks, regulators, accountants and others in respect of bank provisioning and reserving, since there is not yet a common understanding of what these terms are meant to cover.

The paper is aimed to be educational and factual in nature. The paper is also intended to assist the readers of the recently issued joint EFRAG/FEE paper “Impairment of Financial Assets: The Expected Loss Model” by providing background information and an outline of the key terms of the various approaches and models that are currently being debated.

It may also help to better understand the current discussions on impairment in relation to the proposals of the International Accounting Standards Board (IASB) for the impairment of financial assets.

 

FEE Paper

PR: FEE explains the terminology on bank provisioning and reserves as used in the financial instruments debate - FEE News Release

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