1. Dynamic Provisioning to Reduce Procyclicality in Spain
- Author
-
S. Fernández de Lis and Alicia García-Herrero
- Subjects
Engineering ,Economy ,business.industry ,Provisioning ,Limit (mathematics) ,business ,Industrial organization - Abstract
After analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality, this chapter reviews the experiences of three countries that have introduced dynamic provisioning as a regulatory tool to limit procyclicality. The case of Spain – the country with the longest experience – as well as that of Colombia having recently adopted dynamic provisioning is reviewed. A number of policy lessons are drawn from that comparison.
- Published
- 2013
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