Loan Review, Provisioning, and Macroeconomic Linkages
IMF Working Papers, December 1, 2000
Source details
- Canonical URL
- Loan Review, Provisioning, and Macroeconomic Linkages
Other formats
Bibliographic details
- Published: December 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451859904.001
Executive summary
- Loan review is a process routinely used by banks to assess the current value of loan portfolios.
- Provisioning is a technique to translate loan review results into the balance sheet and allows for ongoing valuation of loans.
- Both loan review and provisioning are core elements of credit risk management and important to prudential oversight.
- Valuation feeds into indicators of overall bank soundness and key macroprudential indicators.
Main findings and surveyed practices
- Country practices and recent moves to more forward-looking models are surveyed.
- Macroeconomic linkages are highlighted, including:
- tax treatment of provisions,
- variables of the monetary survey,
- procyclical aspects of loan valuation systems.
Subject coverage and keywords
- Subject: Banking, Capital adequacy requirements, Credit, Financial institutions, Financial regulation and supervision, Loan classification, Loans, Money, Nonperforming loans
- Keywords: bank behavior, bank supervisor, Capital adequacy requirements, capital ratios, Credit, cyclical bank behavior, Loan classification, loan provisioning, loan quality, loan review, loan takedown, loan valuation, loan value, Loans, Nonperforming loans, restructured loan, West Africa, WP
Content in this bundle
- Loan Review, Provisioning, and Macroeconomic Linkages - WP/00/195