Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Unavailable
    Regulatory and Tax Treatment of Loan Loss Provisions
    Unavailable
    Regulatory and Tax Treatment of Loan Loss Provisions
    Unavailable
    Regulatory and Tax Treatment of Loan Loss Provisions
    Ebook43 pages25 minutes

    Regulatory and Tax Treatment of Loan Loss Provisions

    By Claudia Dziobek

    ()

    Currently unavailable

    Currently unavailable

    About this ebook

    Provisioning for loan losses is a method for recognizing the reduction in the value of a hank’s loan portfolio. Provisions are an essential element of prudential risk management and capital adequacy measurement and an important market signal. Loan loss provisions constitute a normal operating expense and should be deducted from taxable income provided that banks adhere to consistent and strictly enforced provisioning procedures, and provided that these mirror loan default probabilities. The argument for harmonized regulatory and tax treatment of loan loss provisions can be based on the economic similarity between loan losses and depreciation of machines and equipment. Tax deductibility of loan loss provisions does not imply a tax deferral or a special subsidy for banks.

    LanguageEnglish
    PublisherINTERNATIONAL MONETARY FUND
    Release dateJun 1, 1996
    ISBN9781463920623
    Unavailable
    Regulatory and Tax Treatment of Loan Loss Provisions

    Related to Regulatory and Tax Treatment of Loan Loss Provisions

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Is There A Way Out Of The Economic Doldrums?

      Dec 6, 2019

      The objective of this article is to offer some policy recommendations aimed at addressing the urgent near-term economic concerns and the significant challenges facing Lebanon. It also highlights the main elements of a medium-term economic reform prog

      7 min read

    • Article

      Banks’ Placements With The Central Bank

      Mar 18, 2022

      The ongoing debate across the country shows that the financial gap at the Central Bank (BDL) exceeds $55 billion taking into account the value of gold and BDL’s foreign currencies. The discourse in this regard often includes a lot of blame for the ba

      6 min read

    • Article

      The Angel Tax Conundrum

      Jul 7, 2023

      INDIA IS THE THIRD largest start-up ecosystem in the world with more than 90,000 such firms, and over 100 unicorns. To “build a strong ecosystem for nurturing innovation and [start-ups]”, the Indian government launched the Startup India programme in

      4 min read

    • Article

      Clearing The Fog Around Deductibility

      Sep 29, 2022

      Investors can be forgiven for being confused by the detail associated with complying with the government's rules to phase out deductibility of residential investment loans. This article attempts to shed light on some of the scenarios and recap some o

      3 min read

    • Article

      Policy Solutions For Fiscal And Monetary Puzzles

      Dec 6, 2019

      Fiscal and monetary policies during the past several years have stifled the economy. It has led to slow growth and high unemployment. Large fiscal and balance of payments current account imbalances have depleted foreign exchange reserves and restrain

      4 min read

    • Article

      Three Necessary Measures To EXIT The Financial And Economic Crisis

      Aug 20, 2021

      Mounir Rached President of the Lebanese Economic Association ∣ Fully free the exchange rate and apply a unified rate on all financial, commodity, and service transactions domestically and on international transactions ∣ Target an immediate fiscal bal

      5 min read

    • Article

      The Benefits Of A Bond Bear Market

      Jul 29, 2022

      Is the rise in bond yields and corresponding fall in prices bad news or good news? It depends on your perspective. In the past year yields on ten-year gilts have risen from 0.5% to a mid-June peak above 2.5%, though they have since slipped back below

      3 min read

    • Article

      A High Risk Game

      Jul 25, 2020

      A High Risk Game
      4 min read

    • Article

      Debt Markets For All

      May 13, 2019

      Debt Markets For All
      2 min read

    • Article

      Cccfa Under The Microscope

      Feb 3, 2022

      As 2022 begins, we hear more and more about CCCFA. So, what exactly is CCCFA? CCCFA is the Credit Contracts and Consumer Finance Act. In short, this act ensures consumers can make informed choices when they are borrowing money. It is designed to make

      2 min read

    • Article

      Is There A Credible Authority?

      Nov 26, 2021

      Is There A Credible Authority?
      5 min read

    • Article

      Legal And Regulatory Policies Impeding Agri Financing In Africa

      May 27, 2022

      Drawing on lessons from East Africa, which may mirror those elsewhere in Africa, there are five main legal and regulatory policies that impede agricultural financing: • International financial reporting standards (IFRS 9). This requires banks to prov

      3 min read

    • Article

      A Fatal Blow To The Economy

      Mar 18, 2022

      The proposed law does not only put restrictions on transfers abroad, but it also imposes strict controls on withdrawals by depositors from their lira and U.S. dollar accounts in Lebanese banks. The constraint on amounts withdrawn from deposits is by

      3 min read

    • Article

      Are Listed Banks Still A Viable Investment Option?

      Oct 16, 2020

      an important consideration when weighing up the investment viability of different commercial banks is that not all JSE-listed lenders are purely South African. Similarly, not all locally listed banks are purely involved in the business of banking. Co

      3 min read

    • Article

      What Financial Experts Had To Say About The Budget

      Feb 25, 2023

      Budget 2023 is as good as we could have hoped for, given current economic conditions. The National Treasury has lifted the expected government debt trajectory, but, importantly, it continues to map a path to fiscal sustainability and a lower governme

      3 min read

    • Article

      What Financial Experts Had To Say About The Budget

      Feb 25, 2023

      Budget 2023 is as good as we could have hoped for, given current economic conditions. The National Treasury has lifted the expected government debt trajectory, but, importantly, it continues to map a path to fiscal sustainability and a lower governme

      3 min read

    • Article

      What Financial Experts Had To Say About The Budget

      Feb 25, 2023

      Budget 2023 is as good as we could have hoped for, given current economic conditions. The National Treasury has lifted the expected government debt trajectory, but, importantly, it continues to map a path to fiscal sustainability and a lower governme

      3 min read

    • Article

      What Financial Experts Had To Say About The Budget

      Feb 25, 2023

      Budget 2023 is as good as we could have hoped for, given current economic conditions. The National Treasury has lifted the expected government debt trajectory, but, importantly, it continues to map a path to fiscal sustainability and a lower governme

      3 min read

    • Article

      Flow On From Tax Changes

      May 27, 2021

      Firstly, a recap on the Government’s announcement. For acquisitions of residential property after March 27, 2021 interest will only be deductible until October 1, 2021. Interest on debt funding residential property acquired prior to March 27, 2021 wi

      2 min read

    • Article

      Commercial Paper’s Worth The Paper It Is Written On

      Jul 29, 2023

      Commercial paper is a type of debt instrument issued by funders, which are not necessarily registered banks or authorised credit providers, to provide finance to companies to cover their short-term operational needs, or as the bean counters call it –

      3 min read

    Reviews for Regulatory and Tax Treatment of Loan Loss Provisions

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words