Accounting rules cause banks' roller-coaster loan reserves

05/7/2013 | American Banker magazine

Whenever credit conditions improve in the U.S., banks start releasing funds from their loan-loss reserves, leading to suggestions that the releases are solely to boost profits. Banks have little flexibility in the matter. Generally accepted accounting principles govern the process of loan-loss reserving and provisioning.

View Full Article in:

American Banker magazine

Published in Brief: