Impact of Basel III on the discretion and timeliness of banks’ loan loss provisions

• Main Authors: Jutasompakorn, Pearpilai, Lim, Chu Yeong, Ranasinghe, Tharindra, Yong, Kevin Ow
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2022
• Subjects: Business::Finance; Basel III Accord; Discretionary Loan Loss Provisions
• Online Access: https://hdl.handle.net/10356/155752
• Institution: Nanyang Technological University

The Basel III Accord tightens capital adequacy requirements for banks by increasing the minimum Tier 1 regulatory capital threshold from 4 to 6 percent. It also emphasizes the need to improve timeliness of loan loss provisions. Using a sample of European banks, we examine the impact of this regulati...