Financial reporting of European banks: towards the end of the ‘golden age’ of post-model adjustments (‘PMAs’) / overlays to banks’ expected credit losses (‘ECL’)?
When the Covid-19 pandemic broke out in 2020, the banks had to make post-model adjustments[1] (or management overlays) to incorporate the impact of this unprecedented situation into the expected credit losses recognised by the banks. While the end of the pandemic should have put an end to these exceptional adjustments, the events that followed (war […]
