СРАВНИТЕЛЕН АНАЛИЗ НА ВЗАИМОВРЪЗКАТА МЕЖДУ ПОДХОДА НА ОЧАКВАНИТЕ КРЕДИТНИ ЗАГУБИ И ПРАВИЛАТА ЗА КАПИТАЛОВО РЕГУЛИРАНЕ НА БАНКИТЕ
Comparative Analysis Of The Relationship Between The Expected Credit Loss Model And The Capital Regulation In Banks

Author(s): Daniela Feschiyan, Radka Andasarova
Subject(s): Accounting - Business Administration
Published by: Икономически университет - Варна
Keywords: banks; expected credit losses; bank capital; IFRS 9; Basel 3
Summary/Abstract: The present article shows the synergistic effect of applying the bank capital regulation (Basel 3) in determining the expected credit losses under IFRS 9 Financial instruments. The recognition of expected credit losses is a specific accounting item in bank system. The main theoretical-applied problems and difficulties in the recognition of expected credit losses in banks under the standardized approach to credit risk assessment (Standardized Approach-SA) are discussed. Special attention has been paid to the measurement of the basic economicindicators for calculating the expected losses: PD (probability of default) and LGD (loss given default). The financial reporting of information about the impairment of financial assets is useful to provide transparent information for accountability and supervision in the banking.

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