Some EU banks keep underprovisioning for ECLs

Divergences between accounting and regulatory markdowns remains high at some top lenders, worrying EBA

Several top European Union lenders continued to underprovision loans relative to regulatory expected credit losses (ECLs) in the second quarter, European Banking Authority (EBA) data shows – a trend that has attracted the regulator’s concerns.

EU rules mandate that when internal model accounting provisions fall below regulatory-parameter ECLs, the difference should be deducted from Common Equity Tier 1 (CET1) reserves.

  !function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName(

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here