IFRS 9 – expected credit losses recognition: assessing the effects of the new expected credit losses model on the economy

Castro, Filipa Frade deMoutinho, Pedro Miguel Timóteo de Sousa2019-06-212019-06-212019-01-22http://hdl.handle.net/10362/73213During disturbing financial times, the economy suffers from the lack of provisioning that companies exhibit. Under IFRS 9, regulators intend to mitigate this issue. The following research project provides evidence regarding the interactions between the Economic Cycle, Loans and Provisions plus the adverse effect of the latter on regulatory capital. Moreover, using an empirical approach, it updates existing literature regarding the influence provisions have on the upward and downward movements of the business cycles. Overall, the new standard may contribute to the stability of the economy but is dependent on its consistent and rigorous application by banksengProvisionsFinancial stabilityRegulatory capitalIFRS 9Expected credit lossesIFRS 9 – expected credit losses recognition: assessing the effects of the new expected credit losses model on the economymaster thesis202226786