IFRS9 e le sfide di contesto

2021 ◽  
Author(s):  
Giuseppe Torluccio ◽  
◽  
Paolo Palliola ◽  
Paola Brighi ◽  
Lorenzo Dal Maso ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Expected Loss ◽  
Economic Cycle ◽  
Support Measures ◽  
Historical Series ◽  
Risk Parameters ◽  
Credit Portfolio ◽  
The Relationship ◽  
Credit Losses ◽  
Forward Looking

Under IFRS9, Financial Institutions are required to implement impairment frameworks to determine the expected losses on their credit portfolio taking into account the current (so called “point in time”) and the prospective (so called “forward looking”) economic cycle. The Covid-19 pandemic, which began in early 2020, has posed significant challenges for Financial Institutions in their ability to manage credit risk. Despite numerous guidelines given by regulators, estimating IFRS9 expected loss continues to be a considerable challenge. The challenge partly stems from the relationship between macro-economic scenarios and credit losses, the treatment of moratoriums inside the historical series for development and calibration of IFRS9 risk parameters, and the management of support measures defined at National and European levels (e.g. Next Generation EU) for the forward looking estimations.

scholarly journals The Development of Expected-Loss Methods of Accounting for Credit Losses: A Review with Analysis of Comment Letters

2021 ◽  
Author(s):  
Noor Hashim ◽  
Weijia Li ◽  
John O'Hanlon
Keyword(s):  
Financial Crisis ◽  
Expected Loss ◽  
Comment Letters ◽  
Loss Method ◽  
Credit Losses ◽  
Forward Looking

After the financial crisis of the late 2000s, concern about delayed credit-loss recognition under the incurred-loss method prompted the FASB and the IASB to develop expected-loss methods. We review the development of these methods, including through comment-letter analysis. Initially, the FASB recommended immediate full recognition of expected losses, including at day one, and the IASB recommended spreading the recognition of initially-expected losses across time. After unsuccessful attempts to converge based on proposals that partly reflected initial recommendations of each board, the boards eventually adopted different methods. We report that U.S. respondents largely opposed the FASB's final method, which required day-one recognition of all expected losses, and that non-U.S. respondents largely supported the IASB's final method, which required day-one recognition of 12-month expected losses. Day-one loss was controversial and impeded convergence. Our comment-letter analysis suggests that a day-one-loss-free more forward-looking incurred-loss method might provide a route to a more converged solution.

Investing in Gentrification: The Eligibility of Gentrifying Neighborhoods for Federal Place-Based Economic Investment in U.S. Cities

2021 ◽  
pp. 107808742110326
Author(s):  
Noli Brazil ◽  
Amanda Portier
Keyword(s):  
Community Development ◽  
Financial Institutions ◽  
Affordable Housing ◽  
Low Income ◽  
Business Development ◽  
Tax Credits ◽  
New Markets ◽  
Job Opportunities ◽  
The Relationship ◽  
Economic Improvement

Place-based policies commonly target disadvantaged neighborhoods for economic improvement, typically in the form of job opportunities, business development or affordable housing. To ensure that investment is channeled to truly distressed areas, place-based programs narrow the pool of eligible neighborhoods based on a set of socioeconomic criteria. The criteria, however, may not be targeting the places most in need. In this study, we examine the relationship between neighborhood gentrification status and 2018 eligibility for the New Markets Tax Credits, Opportunity Zones, Low Income Housing Tax Credits, and the Community Development Financial Institutions Program. We find that large percentages of gentrifying neighborhoods are eligible for each of the four programs, with many neighborhoods eligible for multiple programs. The Opportunity Zone program stands out, with the probability of eligibility nearly twice as high for gentrifying tracts than not-gentrifying tracts. We also found that the probability of eligibility increases with a greater percentage of adjacent neighborhoods experiencing gentrification.

scholarly journals Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Ronald Rateiwa ◽  
Meshach J. Aziakpono
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Financial Institutions ◽  
Time Series Data ◽  
Bank Lending ◽  
Series Data ◽  
The Sustainable Development ◽  
Long Run ◽  
The Relationship

Background: In order for the post-2015 world development agenda – termed the sustainable development goals (SDGs) – to succeed, there is a pronounced need to ensure that available resources are used more effectively and additional financing is accessed from the private sector. Given that traditional bank lending has slowed down, the development of non-bank financing has become imperative. To this end, this article intends to empirically test the role of non-bank financial institutions (NBFIs) in stimulating economic growth.Aim: The aim of this article is to empirically test the existence of a long-run equilibrium relationship between economic growth and the development of NBFIs, and the causality thereof.Setting: The empirical assessment uses time-series data from Africa’s three largest economies, namely, Egypt, Nigeria and South Africa, over the period 1971–2013.Methods: This article uses the Johansen cointegration and vector error correction model within a country-specific setting.Results: The results showed that the long-run relationship between NBFI development and economic growth is relatively stronger in Egypt and South Africa, than in Nigeria. Evidence in respect of Nigeria shows that such a relationship is weak. The nature of the relationship between NBFI development and economic growth in Egypt is positive and significant, and predominantly bidirectional. This suggests that a virtuous relationship between NBFIs and economic growth exists in Egypt. In South Africa, the relationship is positive and significant and predominantly runs from NBFI development to economic growth, implying a supply-leading phenomenon. In Nigeria, the results are weak and mixed.Conclusion: The study concludes that in countries with more developed financial systems, the role of NBFIs and their importance to the economic growth process are more pronounced. Thus, there is need for developing policies targeted at developing the NBFI sector, given their potential to contribute to economic growth.

Decomposition of Fiscal Deterioration in the OECD

2010 ◽  
Vol 213 ◽  
pp. F13-F18 ◽  
Keyword(s):  
Financial Institutions ◽  
Government Support ◽  
Budget Deficits ◽  
Government Budget ◽  
Fiscal Stimulus ◽  
Advanced Economies ◽  
The Government ◽  
Cumulative Deterioration ◽  
The Relationship ◽  
Selection Of

Government fiscal positions in all the advanced economies suffered severe deteriorations during the financial crisis. Figure 1 illustrates the cumulative deterioration of the government budget ratio as a per cent of GDP between 2007 and 2009 in a selection of OECD economies. The sharpest declines materialised in Ireland, Spain and Finland, while public finances in Austria, Germany and Italy have held up better. Budget deficits have worsened in part because of the cyclical downturn, in part because of the policy response to the crisis, including both fiscal stimulus packages and certain fiscal costs related to government support of financial institutions, and in part because of a change in the relationship between revenue and production, which may prove longer-term.

Analysis of the Relationship between Currency Redenomination and Financial Transaction Costs in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 59-68
Author(s):  
Hassana Aliyu MOHAMMED ◽  
◽  
Abdurrahman ISIK ◽  
Paul Terhemba IOREMBER ◽  
◽  
...  
Keyword(s):  
Transaction Costs ◽  
Financial Institutions ◽  
Financial Sector ◽  
Chi Square ◽  
User Costs ◽  
Inflationary Pressure ◽  
Cash Payment ◽  
Chi Square Test ◽  
The Cost ◽  
The Relationship

The study analyses the relationship between currency redenomination and financial sector transaction costs in Nigeria using a sample of 200 respondents from ten financial institutions. Applying the Chi-square test, the study reveals that high currency redenomination removes wasteful transactions removes user costs (difficulties arising from memorizing, calculating and carrying large sum of lowest denominations: coins and smaller notes). The results also show that currency redenomination influences inflationary pressure and currency liberalization in Nigeria. Based on the findings the study recommends the introduction of currency redenomination to facilitate the consumers' cash payment and reduce the cost incurred by producers and issuing authorities, and also make payment system more efficient and effective.

scholarly journals Evaluation of the Upper Paraná River discharge controlled by reservoirs

2009 ◽  
Vol 69 (2 suppl) ◽  
pp. 707-716 ◽  
Author(s):  
EE. Souza Filho
Keyword(s):  
Paraná River ◽  
River Level ◽  
Parana River ◽  
River Damming ◽  
Discharge Rates ◽  
Historical Series ◽  
Discharge Regime ◽  
Upper Paraná River ◽  
The Relationship ◽  
Different Levels

The building of large dams in the Upper Paraná River basin altered the discharge regime at the Porto São José River section. The discharge regime has been altered since 1972, but the changes intensified after the Porto Primavera damming, in late 1998. Considering that discharge control affects the relationship between channel and floodplain, this work aimed to evaluate the intensity of the discharge control that resulted from the operation of the Porto Primavera Dam. To achieve this objective, statistical analyses were carried out based on the Porto São José Fluviometric Station historical series of river level readings and discharge, between 1964 and 2007. Results showed that the average discharge increased from 1964 to 1981 and diminished after river damming. The increase of average discharge rates was followed by an increase of the duration of higher discharges at different levels of geomorphologic and limnological importance, and the reduction of average discharge during the last observed period was followed by a disproportionate decrease in the duration of the abovementioned discharges. Moreover, it is clear that the relationship between fluviometric level and fluvial discharge changed, which implies that a certain river level reading represents a higher discharge than necessary before river damming.

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