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US banks' 2020 credit-loss accounting standard had intended effect during pandemic, study says

By Neil Roland
  • 04 Jan 2022 13:23
  • 04 Jan 2022 13:23
A US accounting standard that went into effect for most banks just before the pandemic worked as intended, resulting in higher allowances set aside early on for estimated credit losses and then a steady stream of allowances later, a Federal Reserve study said.

“[Current Expected Credit Losses] adopters’ loan-loss provisioning was noticeably more

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