Publication:
Bank Loan Classification and Provisioning Practices in Selected Developed and Emerging Countries

dc.contributor.author Laurin, Alain
dc.contributor.author Majnoni, Giovanni
dc.contributor.editor Laurin, Alain
dc.contributor.editor Majnoni, Giovanni
dc.date.accessioned 2013-08-19T16:07:32Z
dc.date.available 2013-08-19T16:07:32Z
dc.date.issued 2003
dc.description.abstract This report reviews loan classification and provisioning practices in a broad sample of countries that differ in size, location and level of financial development. The survey conducted for the report compares the regulatory approaches adopted by industrial and emerging economies, and is intended to complement other sources of information that focus exclusively on either industrial or developing countries. It covers classification of individual and multiple loans, treatment of guarantees, collateral and restructured loans, bank loans review processes, loan loss provisioning, tax treatment of loan loss provisions, disclosure standards, and external auditors' role. Differences in provisioning and classification approaches have often made difficult a comparison of bank and banking system weaknesses across regulatory regimes. Poor classification and provisioning practices have led to solvency ratios that gave a false sense of security, as occurred when seemingly adequately capitalized financial systems failed in the 1990s. Successful regulatory harmonization therefore requires a set of minimum standards for loan classification that is grounded in sound risk management practices, but that is also sufficiently general to recognize differences in national economic and legal environment. The evidence this report provides is intended to contribute to this difficult task. en
dc.identifier http://documents.worldbank.org/curated/en/2003/03/2375952/bank-loan-classification-provisioning-practices-selected-developed-emerging-countries
dc.identifier.isbn 0-8213-5397-7
dc.identifier.uri http://hdl.handle.net/10986/15157
dc.language English
dc.language.iso en_US
dc.publisher Washington, DC: World Bank
dc.relation.ispartofseries World Bank Working Paper;No. 1
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject BANKS & BANKING
dc.subject EMERGING ECONOMIES
dc.subject PROVISIONING
dc.subject RISK MANAGEMENT
dc.subject EXTERNAL AUDITORS
dc.subject FINANCIAL SYSTEMS
dc.subject LOANS GOVERNMENT GUARANTY
dc.subject LOAN GUARANTEES
dc.subject BEST PRACTICES
dc.subject REGULATORY FRAMEWORK
dc.subject REGULATORY CONTROL ACCOUNTING
dc.subject ASSET CLASSIFICATION
dc.subject AUDITING
dc.subject BANK FAILURES
dc.subject BANK SUPERVISION
dc.subject BANKING SYSTEM
dc.subject BANKS
dc.subject BANQUE DE FRANCE
dc.subject BORROWER
dc.subject CAPITAL BASE
dc.subject CAPITAL REQUIREMENTS
dc.subject CENTRAL BANK
dc.subject COLLATERAL
dc.subject CREDIT RISK
dc.subject DEBT
dc.subject DISCLOSURE
dc.subject DISCLOSURE REQUIREMENTS
dc.subject EMERGING ECONOMIES
dc.subject ENFORCEMENT POWERS
dc.subject EXTERNAL AUDITORS
dc.subject FINANCIAL ASSETS
dc.subject FINANCIAL INFORMATION
dc.subject FINANCIAL PERFORMANCE
dc.subject FINANCIAL RATIOS
dc.subject FINANCIAL STABILITY
dc.subject FINANCIAL SYSTEMS
dc.subject GUARANTOR
dc.subject GUIDELINES
dc.subject IMPAIRED ASSETS
dc.subject INFRASTRUCTURE LOANS
dc.subject INTERNATIONAL ACCOUNTING STANDARDS
dc.subject LEGAL INFRASTRUCTURE
dc.subject LEGAL SYSTEMS
dc.subject LIQUIDITY
dc.subject LOAN
dc.subject LOAN ACCOUNTING
dc.subject LOAN CLASSIFICATION
dc.subject LOAN GUARANTEES
dc.subject LOAN LOSS PROVISIONS
dc.subject LOAN LOSSES
dc.subject LOAN PORTFOLIOS
dc.subject LOAN REVIEWS
dc.subject MARKET DISCIPLINE
dc.subject MARKET VALUE
dc.subject MORTGAGES
dc.subject NET REALIZABLE VALUE
dc.subject NONPERFORMING LOANS
dc.subject PENALTIES
dc.subject PROBABILITY OF DEFAULT
dc.subject PRUDENTIAL REGULATION
dc.subject REAL ESTATE LOANS
dc.subject REGULATORY APPROACHES
dc.subject RISK MANAGEMENT
dc.subject SECURITIES
dc.subject SHAREHOLDERS
dc.subject SOLVENCY
dc.title Bank Loan Classification and Provisioning Practices in Selected Developed and Emerging Countries en
dspace.entity.type Publication
okr.doctype Publications & Research :: Publication
okr.doctype Publications & Research :: Publication
okr.docurl http://documents.worldbank.org/curated/en/2003/03/2375952/bank-loan-classification-provisioning-practices-selected-developed-emerging-countries
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social, Urban, Rural and Resilience
okr.globalpractice Governance
okr.globalpractice Finance and Markets
okr.identifier.doi 10.1596/978-0-8213-5397-4
okr.identifier.externaldocumentum 000094946_03061104024591
okr.identifier.internaldocumentum 2375952
okr.identifier.report 26056
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/06/21/000094946_03061104024591/Rendered/PDF/multi0page.pdf en
okr.topic Banks and Banking Reform
okr.topic Finance and Financial Sector Development :: Financial Intermediation
okr.topic Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic Financial Crisis Management and Restructuring
okr.topic Urban Development :: Municipal Financial Management
okr.unit Office of the Vice President (FSEVP)
okr.volume 1
relation.isSeriesOfPublication 3e126efc-de2f-4a95-be5b-bd2e430a4843
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