Federal Reserve Bank of Richmond
Richmond Fed Economic Brief
Loan loss reserve accounting and bank behavior
The rules governing banks' loan loss provisioning and reserves require a trade-off between the goals of bank regulators, who emphasize safety and soundness, and the goals of accounting standard setters, who emphasize the transparency of financial statements. A strengthening of accounting priorities in the decade prior to the financial crisis was associated with a decrease in the level of loan loss reserves in the banking system.
Cite this item
Eliana Balla & Morgan J. Rose & Jessica Sackett Romero, "Loan loss reserve accounting and bank behavior"
, Federal Reserve Bank of Richmond, Richmond Fed Economic Brief, issue Mar, 2012.
Keywords: Financial markets ; Financial institutions
This item with handle RePEc:fip:fedreb:y:2012:i:mar:n:12-03
is also listed on EconPapers
For corrections, contact Christian Pascasio ()