Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland
All public companies in the European Union, including Ireland’s major banks, were required to adopt IAS 39 for their annual accounting periods beginning on or after January 1, 2005. Under the “incurred loss” model of IAS 39, banks could set aside reserves for loan losses only when objective evidence...
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ftyaleuniv:oai:elischolar.library.yale.edu:journal-of-financial-crises-1026 2023-05-15T16:50:09+02:00 Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland Zeissler, Arwin G Metrick, Andrew 2019-11-11T20:40:20Z application/pdf https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/2 https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1026&context=journal-of-financial-crises unknown EliScholar – A Digital Platform for Scholarly Publishing at Yale https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/2 https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1026&context=journal-of-financial-crises Journal of Financial Crises Ireland Accounting IAS 39 IFRS 9 Global Financial Crisis IASB Banking and Finance Law Corporate Finance Economic Policy Policy History Theory and Methods Public Policy text 2019 ftyaleuniv 2022-12-24T23:41:56Z All public companies in the European Union, including Ireland’s major banks, were required to adopt IAS 39 for their annual accounting periods beginning on or after January 1, 2005. Under the “incurred loss” model of IAS 39, banks could set aside reserves for loan losses only when objective evidence existed that a loan was impaired, not in anticipation of future losses. As a result, Irish banks saw their aggregate reserve for bad loans drop from 1.2% of loan balances at the end of 2000 to only 0.4% by 2006-07, just before the collapse of the banking industry caused loan losses to soar. In the aftermath of the global financial crisis, financial regulators and accounting bodies recognized the weakness of the pro-cyclical incurred loss model. As a result, they have proposed alternative “expected loss” models that allow reserves for expected losses to be built up over the life of a loan in a counter-cyclical fashion. Text Iceland Yale University: EliScholar |
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Yale University: EliScholar |
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ftyaleuniv |
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Ireland Accounting IAS 39 IFRS 9 Global Financial Crisis IASB Banking and Finance Law Corporate Finance Economic Policy Policy History Theory and Methods Public Policy |
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Ireland Accounting IAS 39 IFRS 9 Global Financial Crisis IASB Banking and Finance Law Corporate Finance Economic Policy Policy History Theory and Methods Public Policy Zeissler, Arwin G Metrick, Andrew Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
topic_facet |
Ireland Accounting IAS 39 IFRS 9 Global Financial Crisis IASB Banking and Finance Law Corporate Finance Economic Policy Policy History Theory and Methods Public Policy |
description |
All public companies in the European Union, including Ireland’s major banks, were required to adopt IAS 39 for their annual accounting periods beginning on or after January 1, 2005. Under the “incurred loss” model of IAS 39, banks could set aside reserves for loan losses only when objective evidence existed that a loan was impaired, not in anticipation of future losses. As a result, Irish banks saw their aggregate reserve for bad loans drop from 1.2% of loan balances at the end of 2000 to only 0.4% by 2006-07, just before the collapse of the banking industry caused loan losses to soar. In the aftermath of the global financial crisis, financial regulators and accounting bodies recognized the weakness of the pro-cyclical incurred loss model. As a result, they have proposed alternative “expected loss” models that allow reserves for expected losses to be built up over the life of a loan in a counter-cyclical fashion. |
format |
Text |
author |
Zeissler, Arwin G Metrick, Andrew |
author_facet |
Zeissler, Arwin G Metrick, Andrew |
author_sort |
Zeissler, Arwin G |
title |
Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
title_short |
Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
title_full |
Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
title_fullStr |
Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
title_full_unstemmed |
Ireland and Iceland in Crisis B: Decreasing Loan Loss Provisions in Ireland |
title_sort |
ireland and iceland in crisis b: decreasing loan loss provisions in ireland |
publisher |
EliScholar – A Digital Platform for Scholarly Publishing at Yale |
publishDate |
2019 |
url |
https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/2 https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1026&context=journal-of-financial-crises |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
Journal of Financial Crises |
op_relation |
https://elischolar.library.yale.edu/journal-of-financial-crises/vol1/iss3/2 https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1026&context=journal-of-financial-crises |
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1766040325427560448 |