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The crux of bank accounting is how to measure and disclose ex ante credit risk, as loan yields and cost of funds are determined by managerial effectiveness and the financial market. This paper examines how the practice of setting up provisions for loan losses by bank managers had changed to preserve regulatory capitals around the 2008 financial crisis. This paper examines the empirical relationship between ex ante credit loss, which is proxied by loan losses provisions, and realized credit loss, which is measured by net charge-off. The empirical relations are examined before, during, and after the 2008 financial crisis to find the patterns of prediction errors of the incurred loss model. This paper obtains evidence that the empirical relation between non-performing assets and provisions for loan losses weakened at the time of a financial crisis. The relations of net charge-offs and allowance for loan losses on provisions for loan losses amplified during a financial crisis by accounting design. After the financial crisis is over, the empirical relation between non-performing assets and provisions for loan losses does not return back to the pre-crisis relation, but to a different, new post-crisis relation. This paper obtains evidence that financially stable banks in terms of the tier 1 capital ratio, return on assets, market-to-book ratio, or dividend payout ratio tend to adjust provisions for loan losses in a larger scale in response to a financial crisis than less stable banks. [ABSTRACT FROM AUTHOR]

Purpose: In this paper, the authors investigate whether the systemic local banking crises (LBCs) and global financial crisis (GFC) impact the association between bank profit efficiency and earnings quality in developing economies. Design/methodology/approach: Using panel data spanning 29 years over the period 1991–2019 for 169 banks drawn from five East African countries, the authors perform difference-in-difference multivariate analyses using the generalised method of moments (GMM) system estimator on a sample consisting of 2,261 bank-year observations. Findings: The results, which are robust for endogeneity and other checks, show that banks with higher profit efficiency consistently report higher quality earnings. The authors further establish that whereas systemic LBCs contribute negatively to bank earnings quality, the GFC tends to have a positive impact. These results are upheld when the joint impacts of both systemic LBCs, GFC and profit efficiency on earnings quality are considered. The positive influence of profit efficiency and GFC on earnings quality is pronounced under income-decreasing earnings management. The impacts of profit efficiency, LBCs and GFC on earnings quality appear to be non-monotonic and vary across the sampled countries. Research limitations/implications: The study's findings are based on banks in five developing countries within a regional economic bloc. Additional studies could focus on other economic blocs for enhanced generalisability of the findings. In addition, some of the variables examined are studied at bank-level, while other variables are at country-level. Finally, the study establishes an association between the variables of interest, and this does not necessarily imply causation. Practical implications: The results provide useful insights to bank regulatory and supervisory agencies on the need to exercise increased risk-based scrutiny over bank loan loss provisioning and minimum loan loss reserve requirements. From an audit perspective, auditors need to be cautious and apply an enhanced risk-based audit especially when auditing banks during and after a financial, banking or systemic crisis. Credit rating agencies need to pay closer attention to the LLPs of distressed banks. Finally, bank investors and customers should be cautious when using bank financial statements, since bank managers of poorly performing banks might engage in aggressive earnings management. Originality/value: The study is perhaps the first to examine the joint effects of systemic LBCs on the association between bank profit efficiency and the quality of earnings in a larger dataset of banks in a developing regional economic bloc. The authors also employ the GMM system estimator in the modelling, which helps address some weaknesses in prior studies. [ABSTRACT FROM AUTHOR]

I study whether banks' loan loss provisioning contributes to economic downturns, by examining the U.S. housing market. Specifically, I examine the aggregate effects of banks' delayed loan loss recognition (DLR) on house prices during the Great Recession and the channels through which these potential effects arose. I construct ZIP‐code‐level exposure to banks' DLR before the crisis and compare high‐ and low‐exposure ZIP codes during the crisis to examine the aggregate effects of banks' DLR on the housing market. I find that high‐exposure ZIP codes experienced larger decreases in mortgage supply, larger increases in distressed sales, and larger decreases in house prices during the crisis. In addition, I conduct individual bank‐level analyses and find that high‐DLR banks reduced their mortgage supply more than low‐DLR banks, and mortgages issued by high‐DLR banks were more likely to become distressed during the crisis. Taken together, these findings suggest that banks' DLR was associated with nontrivial effects on the housing market during the Great Recession, and the effects of DLR on house prices were likely driven by both the credit‐crunch and distressed‐sales channels. [ABSTRACT FROM AUTHOR]

Credit risk is a major risk to commercial banks and financial institutions. Credit risk of financial institutions is inherent with the nature of the business, and should be managed well for their survival. The present study examines the role of credit risk management and its impact on the financial performance of commercial banks in India. For the study, secondary financial data are collected from published annual reports of 20 commercial banks, consisting of 12 public sector commercial banks and eight private sector commercial banks, covering six years, from 2013-14 to 2018-19. Risk of commercial banks is measured through nonperforming loan ratio, capital adequacy ratio, loan loss provision ratio, cost per loan ratio, and leverages of sample banks. Financial performance of banks is measured through three alternative measures of profitability, namely return on assets, return on equity, and net interest margin. Pooled data are used for panel regression analysis. Empirical study results revealed mixed and varied indication about credit risk management and its influence on the financial performance of commercial banks. The study results indicate that profitability of the banks is falling due to increasing NPAs. However, the capital adequacy ratio enhances the profitability of public sector banks more than the private sector commercial banks. [ABSTRACT FROM AUTHOR]

The machine age having changed both the structure and function of the society, has also changed the nature of human conflict. This change has been examined by academics within the subject of different studies and the change in nature of war has been named as "new war" or "Fourth Generation War". Although there are different names, the common point in all definitions is that the sides of war, the weapons used in the war and the area where the war take place are different now from the old ones. Changing nature of war has also changed the classical security understanding, in which the state and military power are at the center, and security has become to include all critical infrastructures. On the other hand, when talking about war and security, intelligence comes to mind firstly because intelligence activities are the most important way to gain the upper hand over the opponent in war and ensure national security in times of peace. Thus, the subject of this study is war, security and intelligence. The aim of this study is to examine the transformation of war and intelligence, the characteristics of today's conflict environment, the place of cyber security in this environment and the importance of cyber intelligence as an activity for providing cyber security. This study based on descriptive analysis method. Findings indicate that extension of public security led to extension of intelligence, cyber intelligence activities are focused on the provision of banking and public services, and therefore, cyber threat intelligence activities should be focused on in these areas. [ABSTRACT FROM AUTHOR]

Primary (Urban) Cooperative Banks (UCBs) in India operate under the provisions of the Banking Regulation Act of 1949 - As Applicable to Cooperative Societies (AACS). Considering the large heterogeneity in their asset sizes and the absence of any regulatory cap on their leverages, the principal objective of this paper is to understand the interrelationship of their leverage and scale of operations with financial performance. The analysis, based on a three-year pooled data sample of 140 well-distributed UCBs, shows a significant difference across the capital adequacy, leverage and Net Interest Margin (NIM), based on the scale of operations, but due to heterogeneous and skewed distribution of UCBs in terms of asset size, the impact of the scale of operations on the financial performance does not manifest very clearly. It, however, shows that the scale of operations is unrelated to the incidence of non-performing advances. Further, UCBs with higher leverages do not show superior financial performance in terms of key financial variables. However, banks with higher leverage do gain in terms of their Return on Equity (ROE). These findings provide nuanced guidance to the UCBs and are also useful for regulatory policymaking on the subject. [ABSTRACT FROM AUTHOR]

Purpose: In this study, the authors present unique evidence on bank lending types by paying particular attention to the factors that drive the different types of bank lending in Africa using bank level data. Design/methodology/approach: In presenting such evidence, the study employs a robust fixed effect panel data with year and technological controls comprising 57 banks from 29 African economies between 2006 and 2015. Findings: The results show that different factors affect different bank lending types differently in Africa. Specifically, while the authors find that total or aggregate bank lending is positively driven by bank capitalization and spread but negatively driven by bank size, corporate and commercial bank lending is positively driven by bank size, spread, inflation, elections and extent of business disclosure but negatively driven by bank capitalization, loan loss reserves, operational cost and gross domestic product per capita. Moreover, interbank lending is both negatively and positively driven by bank capitalization and size, respectively, while other bank lending type is driven positively by financial crisis but negatively driven by bank size, inflation and extent of business disclosure. Finally, retail and consumer lending is positively driven by bank capitalization, loan loss reserves and spread while negatively driven by bank size and inflation. Practical implications: These imply that bank managers, regulators, policymakers and researchers must begin to see each bank lending category separately and independently since varying factors influence the different categories of bank lending differently. Originality/value: The study presents new insights into how different factors determine different lending types in Africa for the first time to the best of the authors' knowledge. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista de Economía (Universidad Autónoma de Yucatán) is the property of Universidad Autonoma de Yucatan, Facultad de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The current study proposes a new three‐stage network data envelopment analysis (DEA) model to estimate three different types of efficiencies. More specifically, the input efficiency is estimated in the first stage, followed by the evaluation of stability efficiency in the second stage, and finally, the output efficiency is derived from the final stage. In particular, we consider market power in deposits and market power in loans in the banking production process. Rather than using non‐performing loans as an undesirable output, this paper innovatively uses loan loss provisions in bank production. We argue that the loan loss provisions are helpful to improve bank stability because they provide a cushion to absorb unexpected losses, therefore we treat it as a good intermediate output in the second stage and a good intermediate input in the third stage. The results exhibit that the scores of stability inefficiency are the highest, followed by output inefficiency, while Chinese commercial banks have the lowest level of input inefficiency. Not only did we observe that the Chinese banking industry has the highest level of stability inefficiency, but we also noticed that the stability inefficiency had the strongest volatility during 2007–2017. We also explore the impact of non‐performing loan ratios from three different geographical areas on bank efficiency in China in a second‐phase regression analysis, the results of which show that the input inefficiency results from higher levels of financial risk from the central area in China, while the western area in China has the opposite sign. [ABSTRACT FROM AUTHOR]

This paper is motivated by the ongoing debate about the Basel III impact on the efficient functioning of the banking sector. We empirically examine the effect that the implementation of the net stable funding ratio has on real economy. Using data from the EU banking sector, we conduct a retrospective analysis by simulating and investigating historically the NSFR index and its role in the implementation of a common monetary policy. We intervene on the traditional bank lending channel of Bernanke and Blinder (Am Econ Rev 82:901–921, 1992) by incorporating the interaction term between liquidity and interest rates. The analysis is conducted both at an aggregated loan supply level and by loan category while it incorporates, additionally to the interaction term, conventional asset pricing approaches with the adoption of self-financing trading strategies detecting nonlinearities in the relationship between liquidity provisions and bank lending channel. According to our findings, there is evidence of a heterogeneous response of financial intermediaries' loan supply (due to changes of interest rates) across different NSFR levels. Banks with higher NSFR respond positively to an interest rate increase, by restructuring their loans' portfolios to achieve higher risk-adjusted returns, conditional on the presence of an efficient asset allocation. On the contrary, low NSFR banks reduce loan supply as a response to higher interest rates. [ABSTRACT FROM AUTHOR]

This paper examines a novel method of including macroeconomic variables into Loss Given Default models. The approach is transparent, and it easily translates changes in the overall credit environment into Expected Loss estimates, which is one of the crucial points that was recently introduced in the International Financial Reporting Standard 9. We propose a forecast combination procedure that separates the contract-based variables from the macroeconomic indicators. Two models are prepared and benchmarked to a single ordinary least-squares (OLS) model. To combine the forecasts we use three approaches: simple average, the Granger–Ramanathan Method, and Mallows Model Averaging. We tested our predictions on out-of-time data and found that the forecast combination outperforms the single OLS model in terms of the selected forecast quality metrics. [ABSTRACT FROM AUTHOR]

The education in this field of electronic banking has to adapt to rapid progress in technologies used for provision of banking services. The paper aims to shortly present the course of Electronic Services in Banking and to measure and compare the efficiency of education in the course before and during the Covid-19 pandemic. The efficiency of the educational process in the course was measured as learning gain by comparing pre-course and post-course tests' results using absolute gain, relative gain, and class average normalized gain during a period of five years. The education in the course was evaluated as effective in all observed cases. The additional surveys were conducted before and after the course completion detecting positive shifts in students’ knowledge and their adoption of electronic services in banking. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Sharia & Law is the property of United Arab Emirates University, College of Law, Sharia & Law Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Fatec Zona Sul (REFAS) is the property of Revista Fatec Zona Sul (REFAS) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

After the subprime crisis, with the worsening of asset quality all around Europe, a lack of harmonization emerged concerning credit classification, monitoring, provisioning and writing-off in the banking industry. A wave of analysis and new regulations by the Supervising Authorities aimed at highlighting best practices and creating a common standard, in order to enhance transparency and accounting data comparability across the European Union. A point of particular attention concerned the usage of forbearance measures and the classification and provisioning of forborne positions. This paper deep-dives into this issue leveraging on the public dataset disclosed by the European Banking Authority, following the 2018 EU-wide Transparency Exercise. The purpose of this paper is twofold. On one side, we want to gauge the extension of the forbearance measures' usage among a sample of major European banks and the drivers of this usage. On the other side, we want to analyze which main factors impact on the loan loss provisioning of forborne positions. [ABSTRACT FROM AUTHOR]

SYNOPSIS: Prior research acknowledges that the determinants, timeliness, and economic implications of banks' provisions for loan losses (PLL) vary across loan types. However, the lack of machine-readable data on PLL by loan type has precluded researchers from incorporating loan type into the evaluation of PLL beyond either controlling for or partitioning the sample on crude proxies for loan portfolio composition. We calculate PLL by loan type as the change in the allowance for loan losses by loan type, which we hand collect from Form 10-K filings, plus net charge-offs by loan type, which we obtain from regulatory filings. Using these data, we show that prior findings that banks exercise discretion over PLL to smooth earnings and increase regulatory capital are driven by commercial loans, a thin slice of banks' loan portfolios, and that commonly used measures of PLL timeliness vary substantially across loan types. JEL Classifications: G21; G28; M41; M48. [ABSTRACT FROM AUTHOR]

This study unravels trends and momentum in banking and mobile money channels and uptake of select services and thereafter draws implications for enhancing financial inclusion through Digital Financial Services (DFS). The Rate of Change (ROC) approach was applied to analyze the growth momentum in banking and mobile money channels in Uganda. Implications for growth momentum in banking and mobile money channels for DFS and financial inclusion was drawn from observing and making informed interpretation of such observed trends and momentum. The findings of this study imply that banks must innovate to increase their contribution towards enhancing financial inclusion. Additional channel innovations, which may infuse banking and mobile money channels, are needed for banking to leverage on growth of mobile money and regain its role in enhancing financial inclusion. Leveraging the application of digital innovations in services such as payments and digitizing alternative channels such as agent banking are likely to increase efficiencies in physical channels and the provision of banking services and thereby increase overall reach and penetration of banking. The fast pace of mobile money penetration is good for speeding up financial inclusion. However, this calls for better regulatory approaches for DFS risk reduction, consumer protection, and protecting mobile money against integrity and financial crimes. [ABSTRACT FROM AUTHOR]

We compare the 2007–2009 post‐financial‐crisis performance of US banks with their performance before the financial crisis, based on bank size using financial ratios. We find bank performance declined in the post‐financial‐crisis period as compared to its pre‐financial‐crisis performance, evidenced by reduced return on equity (ROE) and return on assets (ROA), higher debt ratios, lower net interest margin, increased net loan losses, more nonperforming loans, and, to a lesser extent, estimated losses on loans. In difference‐in‐differences tests between the largest and smallest groups, we find the biggest banks report significantly higher ROA and lower debt ratio, in addition to outperforming small banks in net interest margin and loan loss reserves. Smaller banks did better only in net loan losses. General economic conditions and interest rate changes are controlled for in our results. We conclude that small banks have a significant disadvantage in the industry in the post‐financial‐crisis era compared to both big banks and their own pre‐financial‐crisis historical performance. [ABSTRACT FROM AUTHOR]

• ECL and CECL loan-loss reserves exceed ICL reserves but are less than predicted. • CECL reserves are more comparable across loan managers than ECL reserves. • Reserves are better/worse predictors of loan losses under ECL/CECL than under ICL. • Profits are less volatile under ECL and CECL than under ICL. We test-bed the differences in properties of the Expected Credit Loss (ECL) and Current Expected Credit Loss (CECL) models in a bank loan setting with respect to their impacts on the adequacy, comparability, and predictability of loan-loss reserves and the volatility of reported profit. To do so, we develop a stylized bank-loan setting in a controlled laboratory environment with a series of eight different secured personalloan portfolios. Fifty-six senior university accounting students take the role of loan managers responsible for making annual loan-loss reserve decisions. We find that the laboratory ECL and CECL reserves are greater than the baseline reserves for the Incurred Credit Loss (ICL) model (which was in place before the introduction of ECL and CECL models), but both regimes lead to lower reserves in the laboratory setting than we find for our risk-neutral baselines. In the laboratory, CECL displays fewer uncovered reserves and greater excessive reserves than ECL. The comparability of reserves deteriorates under the two new regimes relative to ICL, and CECL shows relatively more comparable reserves than ECL. While the laboratory ECL exhibits a modest increase in predictability over ICL, CECL shows a significant decline. Finally, profit volatility falls significantly under both ECL and CECL relative to the ICL baseline, and the laboratory results show less volatility than the risk-neutral baseline values. [ABSTRACT FROM AUTHOR]

The aim of this study is to provide an overview of the principles of IFRS 9 implementation and to analyse its impact on the Czech banking sector. Unlike the previous IAS 39 standard, valid until the end of 2017, the new accounting rules require banks to estimate forward-looking expected credit losses (ECL) while considering relevant exposure level information as well as available macroeconomic predictions. Due to the increased complexity of the ECL models and changing macroeconomic expectations, we hypothesize that the new standard leads to increased volatility of loan loss allowances. This hypothesis is empirically tested and more or less confirmed by an analysis of the quarterly flows of allowances for a sample of large Czech banks from the years 2016-2017 under IAS 39 and from 2018-2019 under IFRS 9. [ABSTRACT FROM AUTHOR]

Copyright is an exclusive property right that has economic rights, which can be used as a collateral on a fiduciary basis. In practice, Law of the Republic of Indonesia Number 42 (1999) concerning Fiduciary which is the legal umbrella for parties in carrying out fiduciary practices, has not fully accommodated the implementation of copyright as a fiduciary collateral, especially in relation to the implementation of its execution. Therefore, it is necessary to study the legal certainty of copyright regulation as an object of fiduciary collateral and how the concept of execution of copyright serve as a fiduciary collateral. The descriptive analysis method was used with a normative juridical approach to conduct this research. Secondary data was used as literature reviews and documentation research, which included statutory regulations, international treaties, opinions of legal experts, results of previous research, and other sources related to copyright issues and fiduciary collateral. The results of this study revealed that copyright owners face difficulties in making their creations the object of fiduciary, because of unclear implementation of said regulations including its execution. The provisions of Bank Indonesia Regulations, too, stipulate in a limited way about mobile assets that can be used as fiduciary collateral, while copyright is not listed as one of them. The study recommends creation of firm regulations that can stipulate copyrights as objects of fiduciary collateral and can benefit the creator of the copyrighted work. [ABSTRACT FROM AUTHOR]

Does enhancing banks' information sets and understanding of credit risks improve loan loss recognition? We study this question using a global dataset of staggered initiations and coverage increases of public credit registries (PCRs). Mandated by national regulators, PCRs collect borrower and loan information from lenders and share it with the banks in the financial system. This setting represents a significant improvement in banks' assessment of loss events. We find that PCR initiations and coverage reforms enhance the timeliness of banks' loan 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 in banks' information sets leading to better provisioning decisions. JEL Classifications: D82; G21; G28; G32; M41. [ABSTRACT FROM AUTHOR]

Purpose of the article: Based on the propositions of the signalling hypothesis and prospect theory, this study examined the extent of attempt by Nigerian deposit money banks (DMBs) to solve the issue of adverse selection via signalling their financial prospects using loan loss provisions (LLPs). The empirical test was subject to the DMBs' riskiness and changes in the accounting rule given failure of a number DMBs and the adoption of the International Financial Reporting Standards (IFRSs) respectively in Nigeria in the recent past. Methodology: Bank-level unbalanced panel datasets of a sample 16 DMBs, which are related to the variables of the study, were hand-extracted from their annual reports and account between 2007 and 2017. The analysis was conducted using the Prais-Winsten regression correlated with panel corrected standard errors (PCSE-PW) owing to the presence of heteroscedastic and autocorrelated residuals in the study's regression models. Scientific aim: The study examined the relationship between LLPs and one-year-ahead changes in earnings before taxes and LLPs to establish whether Nigerian DMBs signal their financial strength via LLPs. Findings: The study largely found that Nigerian DMBs, regardless of accounting regime and risk of insolvency, do not use LLPs to signal their financial strength. However, where the evidence of signalling via LLPs was evident the coefficient of earnings signalling was insignificant, where it was significant signalling was achievable via discretionary LLPs (DLLP) rather than actual LLPs (TLLP) suggesting manipulative provisioning in the use of LLPs to signal. Conclusions: The study's findings included empirical communication alerts to the regulators and Nigerian DMBs on the need for improvement in earnings signalling, as the present scenario may be interpreted as a sign of a non-going concern by analytical stakeholders. Limits of research: The generalisation of the study's findings may be limited by the focus on one regime (IAS 39) of IFRS loan loss reporting but mitigated by the partial implementation of the second regime (IFRS 9) for the first four years in the country. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this article is to derive formulas for lifetime expected credit loss of loans that are required for the calculation of loan loss reserves under IFRS 9. This is done both for fixed-rate and floating rate loans under different assumptions on LGD modeling, prepayment, and discount rates. Design/methodology/approach: This study provides exact formulas for lifetime expected credit loss derived analytically together with the mathematical proofs of each expression. Findings: This articles shows that the formula most commonly applied in the literature for calculating lifetime expected credit loss is inconsistent with measuring expected loss based on expected discounted cash flows. Formulas based on discounted cash flows always lead to more conservative numbers. Practical implications: For banks reporting under IFRS 9, the implication of this research is a better understanding of the different approaches used for computing lifetime expected loss, how they are connected, and what assumptions are underlying each approach. This may lead to corrections in existing frameworks to make applications of risk management systems more consistent. Originality/value: While there is a lot of literature explaining IFRS 9 and evaluating its impact, none of the existing research has systematically analyzed the calculation of lifetime expected credit loss for this purpose and how the formula changes under different modeling assumptions. This gap is filled by this study. [ABSTRACT FROM AUTHOR]

This paper provides early evidence on the effect of global regulation mandating a switch from loan loss provisioning (LLP) based on incurred credit losses (ICLs) to LLP based on expected credit losses (ECLs). Using a sample of systemically important banks from 74 countries, we find that ECL provisions are more predictive of future bank risk than ICL provisions. Corroborating that the switch to ECL provisioning results in more information to assess bank risk, we also observe that the announcement of a larger first‐time impact of the accounting change elicits lower stock returns and higher changes in credit default swap spreads. Critically, these patterns are most pronounced when credit conditions deteriorate. Additional analyses show that the higher information content of the ECL model stems from the provisions for nondefaulted loans, which did not exist under ICL. Our study contributes to the debate on the effect of the ECL model on procyclicality, an especially pressing issue in the context of the current pandemic. [ABSTRACT FROM AUTHOR]

This study explores the effects of the new impairment model, in IFRS 9, on the financial statements of deposit banks issued in 2018. In this respect, the changes in the provisions of the expected credit losses in three stages of the impairment model were analyzed. Further the study investigates the changes in specific and general provisions required by the new regulation and the industrial risks. As a result, the rise in the provisions of loans in the second stage has led to an increase in the general provisions of 12 out of 18 banks. There is a major rise in the specific provisions in some of the banks. Furthermore, the results of the analysis reveal that, due to the concentration of loans for the service sector, the risk intensification from the loans in this category has been identified. [ABSTRACT FROM AUTHOR]