Basel Proposes Interim Retention Treatment of Loss Provisions

With new expected credit loss approaches coming on line soon, the Basel Committee on Banking Supervision today issued a document proposing to retain the existing regulatory treatment of credit loss provisions on an interim basis. “This proposed approach would apply pending further analysis of possible regulatory policy options and a better understanding of the impact of the move to ECL provisioning on capital ratios,” the committee said.

The committee also issued a discussion paper outlining longer-term policy considerations related to accounting provisions under Basel III. Comments on both documents are due by Jan. 13, 2017. For more information, contact ABA’s Hugh Carney or Mike Gullette.