Expected Credit Loss Framework
On 22 July, 2023, private sector lender ICICI Bank said the bank is ready to move to an expected credit loss (ECL) framework for provisioning.
Expected Credit Loss (ECL)
- ECL is a method of accounting for credit risk based on the loss likely to occur on a loan or portfolio of loans.
- Under this practice, a bank is required to estimate expected credit losses based on forward-looking estimations rather than wait for credit losses to be actually incurred before making corresponding loss provisions.
- As per the proposed framework, banks will need to classify financial assets (primarily loans) as Stage 1, 2, or ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 Bank in a Box & Security Operations Centre: Boosting UCBs
- 2 SEBI Introduces IT Resilience Index
- 3 Regenerative Agriculture: A Pathway to Sustainable and Climate-Resilient Farming
- 4 GOBARdhan: Fuelling Clean Energy and Rural Growth
- 5 Samudra Manthan: National Offshore Exploration Scheme
- 6 Mobile Phone Manufacturing Scheme: Strengthening India’s Electronics Manufacturing
- 7 Foreign Assets of Small Taxpayers-Disclosure Scheme
- 8 Blue Bond
- 9 Periyar Cow
- 10 Incentive Scheme for Promotion of Domestic Piped Natural Gas Connections
