Bundesbank paper: German banks use specific loan loss provisions counter-cyclically
Banks increase level of loan loss provisions during upswings and decrease them during downturns, authors find
German banks increase their level of specific loan loss provisions during upswings and decrease them during downturns, according to a Bundesbank research paper which claims its findings contrast with the results of several previous studies for other countries.
Loan loss provisioning and procyclicality: evidence from an expected loss model by Christian Domikowsky, Sven Bornemann, Klaus Duellmann, and Andreas Pfingsten explores loan loss provisioning under German national accounting rules using
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