Non-performing loans and allowance for loan losses in the banking sector
Credit activity is an area of banking activity, constituting the main source of income, associated with credit risk, the materialisation of which generates losses for the financial result and capital base of individual credit institutions and the stability of the banking system and the financing of...
Salvato in:
| Autori principali: | , , , , , |
|---|---|
| Natura: | Online |
| Lingua: | polacco |
| Pubblicazione: |
Wydawnictwo Uniwersytetu Łódzkiego
2025
|
| Soggetti: | |
| Accesso online: | ONIX_20250307_9788383314150_699 |
| Tags: |
Nessun Tag, puoi essere il primo ad aggiungerne!!
|
| _version_ | 1869516403916144640 |
|---|---|
| author | Dorota Czechowska, Iwona Lipiński, Czesław Stawska, Joanna Stępińska, Joanna Zatoń, Wojciech Borys, Marcin |
| author_browse | Borys, Marcin Dorota Czechowska, Iwona Lipiński, Czesław Stawska, Joanna Stępińska, Joanna Zatoń, Wojciech |
| author_facet | Dorota Czechowska, Iwona Lipiński, Czesław Stawska, Joanna Stępińska, Joanna Zatoń, Wojciech Borys, Marcin |
| author_sort | Dorota Czechowska, Iwona |
| collection | Directory of Open Access Books |
| description | Credit activity is an area of banking activity, constituting the main source of income, associated with credit risk, the materialisation of which generates losses for the financial result and capital base of individual credit institutions and the stability of the banking system and the financing of the economy. The purpose of the study is to present, assess and forecast credit losses in the banking sector in Poland, in the context of identifying patterns and trends in credit claims, and the causal relationship between the outcome of expected credit losses and the economic situation. Credit loss according to IFRS 9 is the difference between all contractual cash flows due to the entity and all cash flows the entity expects to receive, discounted at the original effective interest rate. Credit losses arise in situations of deterioration in creditworthiness and factors on the part of the credit institution. A forecasting model was used as the research method, preceded by a presentation of the determinants of the ECL score, as well as the determination of the ECL score. Relevant macroeconomic variables were identified and assumptions were made for macroeconomic determinants in the expected credit loss models. The analysis conducted indicates that the banking sector has been quite effective in controlling the level of emerging credit losses, as indicated by the declining trend of the NPL ratio and the relatively smooth passage of the period associated with the COVID-19 pandemic. Prudent credit policies and impaired receivables management contribute to this. However, it should be noted that a sharp deterioration in the macroeconomic situation in the short term will pose a major problem for the banking sector. |
| format | Online |
| id | doab-20.500.12854ir-154517 |
| institution | Directory of Open Access Books |
| language | pol |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Wydawnictwo Uniwersytetu Łódzkiego |
| publisherStr | Wydawnictwo Uniwersytetu Łódzkiego |
| record_format | ojs |
| spelling | doab-20.500.12854ir-1545172025-03-07T13:08:54Z Non-performing loans and allowance for loan losses in the banking sector Dorota Czechowska, Iwona Lipiński, Czesław Stawska, Joanna Stępińska, Joanna Zatoń, Wojciech Borys, Marcin banks non-performing loans credit policy allowance for loan losses loan loss forecasting Credit activity is an area of banking activity, constituting the main source of income, associated with credit risk, the materialisation of which generates losses for the financial result and capital base of individual credit institutions and the stability of the banking system and the financing of the economy. The purpose of the study is to present, assess and forecast credit losses in the banking sector in Poland, in the context of identifying patterns and trends in credit claims, and the causal relationship between the outcome of expected credit losses and the economic situation. Credit loss according to IFRS 9 is the difference between all contractual cash flows due to the entity and all cash flows the entity expects to receive, discounted at the original effective interest rate. Credit losses arise in situations of deterioration in creditworthiness and factors on the part of the credit institution. A forecasting model was used as the research method, preceded by a presentation of the determinants of the ECL score, as well as the determination of the ECL score. Relevant macroeconomic variables were identified and assumptions were made for macroeconomic determinants in the expected credit loss models. The analysis conducted indicates that the banking sector has been quite effective in controlling the level of emerging credit losses, as indicated by the declining trend of the NPL ratio and the relatively smooth passage of the period associated with the COVID-19 pandemic. Prudent credit policies and impaired receivables management contribute to this. However, it should be noted that a sharp deterioration in the macroeconomic situation in the short term will pose a major problem for the banking sector. 2025-03-07T13:08:52Z 2025-03-07T13:08:52Z 2024 book ONIX_20250307_9788383314150_699 9788383314150 9788383314143 https://directory.doabooks.org/handle/20.500.12854/154517 pol Finance image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://www.press.uni.lodz.pl/index.php/wul/catalog/book/878 Wydawnictwo Uniwersytetu Łódzkiego electronic 10.18778/8331-414-3 Credit activity is an area of banking activity, constituting the main source of income, associated with credit risk, the materialisation of which generates losses for the financial result and capital base of individual credit institutions and the stability of the banking system and the financing of the economy. The purpose of the study is to present, assess and forecast credit losses in the banking sector in Poland, in the context of identifying patterns and trends in credit claims, and the causal relationship between the outcome of expected credit losses and the economic situation. Credit loss according to IFRS 9 is the difference between all contractual cash flows due to the entity and all cash flows the entity expects to receive, discounted at the original effective interest rate. Credit losses arise in situations of deterioration in creditworthiness and factors on the part of the credit institution. A forecasting model was used as the research method, preceded by a presentation of the determinants of the ECL score, as well as the determination of the ECL score. Relevant macroeconomic variables were identified and assumptions were made for macroeconomic determinants in the expected credit loss models. The analysis conducted indicates that the banking sector has been quite effective in controlling the level of emerging credit losses, as indicated by the declining trend of the NPL ratio and the relatively smooth passage of the period associated with the COVID-19 pandemic. Prudent credit policies and impaired receivables management contribute to this. However, it should be noted that a sharp deterioration in the macroeconomic situation in the short term will pose a major problem for the banking sector. 10.18778/8331-414-3 83bfe9c9-323d-4283-b087-d859fd9af314 9788383314150 9788383314143 electronic open access |
| spellingShingle | banks non-performing loans credit policy allowance for loan losses loan loss forecasting Dorota Czechowska, Iwona Lipiński, Czesław Stawska, Joanna Stępińska, Joanna Zatoń, Wojciech Borys, Marcin Non-performing loans and allowance for loan losses in the banking sector |
| title | Non-performing loans and allowance for loan losses in the banking sector |
| title_full | Non-performing loans and allowance for loan losses in the banking sector |
| title_fullStr | Non-performing loans and allowance for loan losses in the banking sector |
| title_full_unstemmed | Non-performing loans and allowance for loan losses in the banking sector |
| title_short | Non-performing loans and allowance for loan losses in the banking sector |
| title_sort | non performing loans and allowance for loan losses in the banking sector |
| topic | banks non-performing loans credit policy allowance for loan losses loan loss forecasting |
| topic_facet | banks non-performing loans credit policy allowance for loan losses loan loss forecasting |
| url | ONIX_20250307_9788383314150_699 |
| work_keys_str_mv | AT dorotaczechowskaiwona nonperformingloansandallowanceforloanlossesinthebankingsector AT lipinskiczesław nonperformingloansandallowanceforloanlossesinthebankingsector AT stawskajoanna nonperformingloansandallowanceforloanlossesinthebankingsector AT stepinskajoanna nonperformingloansandallowanceforloanlossesinthebankingsector AT zatonwojciech nonperformingloansandallowanceforloanlossesinthebankingsector AT borysmarcin nonperformingloansandallowanceforloanlossesinthebankingsector |