【讲座时间】2021年11月19日 8:30
【参与方式】线上（中目）
【讲座主题】Does the Current Expected Credit Loss Approach Decrease the Procyclicality of Banks’ Lending?
【嘉宾介绍】邹邮郦 康涅狄格大学商学院 助理教授
Youli Zou joined UConn in 2020 after spending seven years on the faculty of George Washington University. She earned her bachelor’s degree in Finance from Peking University, China and her Ph.D. in Accounting from University of Toronto. She teaches financial accounting courses in the undergraduate program. Youli’s research interests include various stakeholders’ role in shaping financial reporting and economic consequences of accounting regulation.Her research has been published in top journals, including TAR,JAE,CAR.
【内容提要】
Prior research provides evidence that banks reduce their loan originations during recessions to reduce the potential for their regulatory capital to become inadequate. Policymakers have expressed the concern that banks’ use of incurred loss model to accrue for loan losses exacerbates this lending procyclicality by delaying the recognition of loan losses to recessions or other periods when the losses become incurred, probable, and reasonably estimable. In response to this concern, the FASB issued Accounting Standards Update 2016-13, which requires large public (small public and private) banks to accrue for loan losses using the current expected credit loss (CECL) approach starting in 2020 (2023). Contrary to policymakers’ concern, we predict and provide evidence that banks that adopted CECL prior to the COVID-19 pandemic reduced loan growth during the accompanying recession relative to banks that had not yet adopted CECL.This effect is stronger (weaker) for adopting banks with low regulatory capital (with low heterogenous loans or that recorded large increases in credit loss allowances upon their initial adoption of CECL). We also find that adopting banks increased their loan loss provisions during the recession more than non-adopting banks. Our results are consistent with the CECL approach increasing banks’ lending procyclicality.
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