Banco de España & CEMFI & FSI High-Level Conference on the new bank provisioning standards: implementation challenges and financial stability implications
Banco de España, the Centro de Estudios Monetarios y Financieros (CEMFI) and the Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) jointly organised a high-level conference to discuss the introduction, implementation and consequences, from a financial stability perspective, of the application of new provisioning standards.
The expected credit losses model (IFRS 9) under IAS and the current expected credit losses (CECL) under US GAAP constitute new references for banks to determine the way provisions for credit risk losses are to be calculated. The programme of the conference included five panels devoted to: (i) the evolution from the incurred loss to the expected credit loss paradigm, (ii) modelling challenges, (iii) model complexity and supervisory capacity, (iv) the time dimension of bank provisions, and (v) implications for capital requirements, enforcement and disclosure.
Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), was the keynote speaker of the conference, which was opened by Pablo Hernández de Cos, Governor of the Banco de España.
The event took place in English and was held in physical format.
18 October 2018 - 19 October 2018
Madrid
Speakers
18 October
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- Opening
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- Panel 1: The Standards - Evolution from incurred losses to expected losses
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- Panel 2: Expected credit loss approach – Modelling challenges
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- Panel 3: Implementation issues - Model complexity and supervisory capacity
19 October
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Keynote
Better to be good and on time than perfect and late: replacing incurred loss by expected loss
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Panel 4: The time dimension of bank provisions - Financial stability and pro-cyclicality
Chair: Jesús Saurina, Banco de España
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Panel 5: Implications for capital requirements, enforcement and disclosure
Chair: Ana Martínez-Pina, CNMV
Presentation by Germán López Espinosa, Universidad de Navarra
(1 MB)- Alison Scott, Bank of England
