Loan Review, Provisioning, and Macroeconomic Linkages

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. It allows for ongoing valuation of loans. Both are core elements of credit risk management and important to prudential...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2000
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Loan Review, Provisioning, and Macroeconomic Linkages 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2000 
300 |a 32 pages 
651 4 |a Czech Republic 
653 |a Depository Institutions 
653 |a Asset requirements 
653 |a Credit 
653 |a Capital adequacy requirements 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Mortgages 
653 |a Loan classification 
653 |a Nonperforming loans 
653 |a Money 
653 |a Loans 
653 |a Business Taxes and Subsidies 
653 |a Banks and banking; State supervision 
653 |a Banks and Banking 
653 |a Financial regulation and supervision 
653 |a Banking 
653 |a Money and Monetary Policy 
653 |a Financial services law & regulation 
710 2 |a International Monetary Fund 
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490 0 |a IMF Working Papers 
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520 |a 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. It allows for ongoing valuation of loans. Both are core elements of credit risk management and important to prudential oversight. As illustrated in this paper, valuation feeds into indicators of overall bank soundness and key macroprudential indicators. 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, and procyclical aspects of loan valuation systems