... expected losses; we leave this to future research. We make several contributions to the literature in accounting, banking, and finance. First, the interest in estimating banks' expected losses has been gaining momentum since the introduction of the current expected credit loss (CECL) model and IFRS 9...

... forecasts for banks with greater unrecognized future losses and incurred loss constraints suggest CECL could affect cross-sectional provision timeliness differences by removing these constraints. Specifically, the provision forecast and future NPL association increases with banks' unconstrained future loss...