Search Results

Showing results 1 to 10 of approximately 17.

(refine search)
SORT BY: PREVIOUS / NEXT
Jel Classification:M41 

Working Paper
Current Expected Credit Losses (CECL) Standard and Banks' Information Production

We examine whether the adoption of the current expected credit losses (CECL) model, which reflects forward-looking information in loan loss provisions (LLP), improves banks’ information production. Consistent with better information production, we find changes in CECL banks' financial reporting and operations. First, these banks' loan loss provisions become timelier and better reflect future local economic conditions. Second, CECL banks disclose longer, more forward-looking, and more quantitative LLP information. Lastly, they have fewer loan defaults after adopting CECL. These ...
Finance and Economics Discussion Series , Paper 2023-063

Journal Article
Profits and balance sheet developments at U.S. commercial banks in 2007

Reviews recent developments in the balance sheets and in the profitability of U.S. commercial banks. The article discusses how developments in the U.S. banking industry in 2007 and early 2008 were related to changes in financial markets and in the broader economy.
Federal Reserve Bulletin , Volume 94 , Issue Jun , Pages A1-A39

Journal Article
Profits and balance sheet developments at U.S. commercial banks in 2005

Federal Reserve Bulletin , Volume 92 , Issue Jun

Journal Article
The role of financial reporting and transparency in corporate governance

The authors review recent literature on the role of corporate financial reporting and transparency in reducing governance-related agency conflicts between managers, directors, shareholders, and other stakeholders?most notably financial regulators?and suggest some avenues for future research. Key themes include the endogenous nature of governance mechanisms with respect to information asymmetry between contracting parties, the heterogeneous nature of the informational demands of contracting parties, and the corresponding heterogeneity of the associated governance mechanisms. The authors also ...
Economic Policy Review , Issue Aug , Pages 107-128

Working Paper
From Incurred Loss to Current Expected Credit Loss (CECL): A Forensic Analysis of the Allowance for Loan Losses in Unconditionally Cancelable Credit Card Portfolios

The Current Expected Credit Loss (CECL) framework represents a new approach for calculating the allowance for credit losses. Credit cards are the most common form of revolving consumer credit and are likely to present conceptual and modeling challenges during CECL implementation. We look back at nine years of account-level credit card data, starting with 2008, over a time period encompassing the bulk of the Great Recession as well as several years of economic recovery. We analyze the performance of the CECL framework under plausible assumptions about allocations of future payments to existing ...
Working Papers , Paper 20-09

Working Paper
How Does the Fed Adjust its Securities Holdings and Who is Affected?

The Federal Open Market Committee indicated in its September 2017 post-meeting statement that it will initiate in October a balance sheet normalization program to gradually reduce its securities holdings. This action will put in place a policy of reinvesting and redeeming portions of the principal payments received by the Federal Reserve from its holdings of Treasury and agency securities. How are these adjustments to the Federal Reserve?s securities holdings transacted and who is affected? This paper provides a primer regarding how the Federal Reserve accounts for these securities ...
Finance and Economics Discussion Series , Paper 2017-099

Working Paper
Information Production, Misconduct Effort, and the Duration of Financial Misrepresentation

We examine the link between information produced by auditors and analysts and fraud duration. Using a hazard model, we analyze misstatement periods related to SEC accounting and auditing enforcement releases (AAERs) between 1982 and 2012. Results suggest that misconduct is more likely to end just after firms announce an auditor switch or issue audited financial statements, particularly when the audit report contains explanatory language. Analyst following increases the fraud termination hazard. However, increases (decreases) in analyst coverage have a negative (positive) marginal impact on ...
Working Papers , Paper 16-13R

Journal Article
Public disclosure and risk-adjusted performance at bank holding companies

This article examines the relationship between the amount of information disclosed by bank holding companies (BHCs) and the BHCs? subsequent risk-adjusted performance. Using data from the annual reports of BHCs with large trading operations, the author constructs an index that quantifies the BHCs? public disclosure of forward-looking estimates of market risk exposure in their trading and market-making activities. She then examines the relationship between this index and subsequent risk-adjusted returns in the BHCs? trading activities and for the firm overall. The key finding is that more ...
Economic Policy Review , Issue Aug , Pages 151-173

Working Paper
From Incurred Loss to Current Expected Credit Loss (CECL): Forensic Analysis of the Allowance for Loan Losses in nconditionally Cancelable Credit Card Portfolios

The Current Expected Credit Loss (CECL) framework represents a new approach for calculating the allowance for credit losses. Credit cards are the most common form of revolving consumer credit and are likely to present conceptual and modeling challenges during CECL implementation. We look back at nine years of account level credit card data, starting with 2008, over a time period encompassing the bulk of the Great Recession as well as several years of economic recovery. We analyze the performance of the CECL framework under plausible assumptions about allocations of future payments to existing ...
Working Papers , Paper 19-8

Working Paper
CECL and the Credit Cycle

We find that that the Current Expected Credit Loss (CECL) standard would slightly dampen fluctuations in bank lending over the economic cycle. In particular, if the CECL standard had always been in place, we estimate that lending would have grown more slowly leading up to the financial crisis and more rapidly afterwards. We arrive at this conclusion by estimating historical allowances under CECL and modeling how the impact on accounting variables would have affected banks' lending and capital distributions. We consider a variety of approaches to address uncertainty regarding the management of ...
Finance and Economics Discussion Series , Paper 2019-061

FILTER BY year

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

G21 11 items

G28 7 items

E58 3 items

G34 3 items

G38 3 items

show more (29)

FILTER BY Keywords

Information Production 4 items

Banks 3 items

Allowance for Loan and Lease Losses 2 items

Current Expected Credit Losses (CECL) 2 items

Fraud duration 2 items

Fraud effort 2 items

show more (53)

PREVIOUS / NEXT