Series: IMF Working Papers
Author(s): Torsten Wezel , Jorge Chan-Lau , and Francesco Columba
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2012
Keywords: Dynamic Provisioining, Procyclicality, capital adequacy, capital adequacy ratio, banking, dividend payout, banking system, Financial Institutions and Services: Government Policy and Regulation,
This simulation-based paper investigates the impact of different methods of dynamic provisioning on bank soundness and shows that this increasingly popular macroprudential tool can smooth provisioning costs over th...