... 08 2024 22 08 2024 2024 current expected credit loss (CECL) approach loan loss provisions banks lending COVID-19 recession regulatory capital THE ACCOUNTING REVIEW Vol. XX, No. XX MONTH YEAR pp. 1 26 American Accounting Association DOI: 10.2308/TAR-2022-0275 The Effect...

... loss recognition—the extent to which loan loss provisions capture subsequent nonperforming loans. The effects are greater when PCRs distribute more information and are not driven by changes in borrower quality or supervisory stringency. Overall, these inferences are consistent with improvements...

... of a bank's reported allowance for loan and lease losses (ALLL) and, by association, its provision for loan and lease losses (PLLL). banks credit loss loan loss provisions bank failure analyst forecast standard setting The authors gratefully acknowledge the helpful comments made by Mary...

... that, because mandatory recognition of hedge ineffectiveness under SFAS 133 reduced banks' ability to smooth income through derivatives, banks that are more affected by SFAS 133 rely more on loan loss provisions to smooth income. We find evidence consistent with this argument. We also find that the increased...