Bank provisions in the context of the COVID-19 pandemic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43921528" target="_blank" >RIV/62156489:43110/22:43921528 - isvavai.cz</a>

Výsledek na webu

<a href="https://4ab039238f.clvaw-cdnwnd.com/86dee696f396962ce1759356ee8577e1/200000170-688886888b/e-Conference%202022-6.pdf?ph=4ab039238f" target="_blank" >https://4ab039238f.clvaw-cdnwnd.com/86dee696f396962ce1759356ee8577e1/200000170-688886888b/e-Conference%202022-6.pdf?ph=4ab039238f</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Bank provisions in the context of the COVID-19 pandemic

Popis výsledku v původním jazyce

The paper deals with the issue of making banks&apos; provisions in the context of the current economic development in connection with the ongoi ng COVID-19 pandemic. It focuses on risk in the banking business, especially credit risk. It is the existence of credit risk that gives rise to the obligation of banks to make provisions for loans receivable, which is the main topic of the paper. In making provisions and calculating their correct level, banks followed the International Accounting Standard IFRS 9 - Financial Instruments, which has been in force since 2018. The starting point for determining the correct level of provisions for the bank&apos;s receivables is the classifi cation of loans receivable. When calculating the provisions for loans receivable, the provisioning method under IFRS 9 focuses mainly on future expected losses and introduces a new classifi cation of loans receivable, the so-called staging. Depending on the classifi cation of loans receivable into stages, banks then make provisions under IFRS 9 for 12-month or lifetime expected credit losses. The research part of the paper concentrates on the timeliness of provisioning of banks in the Czech Republic in relation to the evolution of the riskiness of bank loan portfolios in the year 2020. For selected banks the quality and composition of loan portfolios, the evolution of the volume of loans in individual stages, and the level of provisions were assessed. Loan provisioning was assessed in the context of the adoption of a legal moratorium, which allowed an across-the-board deferral of repayments to bank customers for up to six months in 2020.

Název v anglickém jazyce

Bank provisions in the context of the COVID-19 pandemic

Popis výsledku anglicky

The paper deals with the issue of making banks&apos; provisions in the context of the current economic development in connection with the ongoi ng COVID-19 pandemic. It focuses on risk in the banking business, especially credit risk. It is the existence of credit risk that gives rise to the obligation of banks to make provisions for loans receivable, which is the main topic of the paper. In making provisions and calculating their correct level, banks followed the International Accounting Standard IFRS 9 - Financial Instruments, which has been in force since 2018. The starting point for determining the correct level of provisions for the bank&apos;s receivables is the classifi cation of loans receivable. When calculating the provisions for loans receivable, the provisioning method under IFRS 9 focuses mainly on future expected losses and introduces a new classifi cation of loans receivable, the so-called staging. Depending on the classifi cation of loans receivable into stages, banks then make provisions under IFRS 9 for 12-month or lifetime expected credit losses. The research part of the paper concentrates on the timeliness of provisioning of banks in the Czech Republic in relation to the evolution of the riskiness of bank loan portfolios in the year 2020. For selected banks the quality and composition of loan portfolios, the evolution of the volume of loans in individual stages, and the level of provisions were assessed. Loan provisioning was assessed in the context of the adoption of a legal moratorium, which allowed an across-the-board deferral of repayments to bank customers for up to six months in 2020.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

European Forum of Entrepreneurship 2022: Proceedings of the 15th International Scientific Conference

ISBN

978-80-87325-58-2

ISSN

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e-ISSN

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Počet stran výsledku

13

Strana od-do

159-171

Název nakladatele

Newton College a.s.

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

24. 3. 2022

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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