FSI finds divergent practices on non-performing assets

Study finds it is hard to make “meaningful comparisons” of troubled assets across jurisdictions

The Bank for International Settlements, Basel
The FSI is based at the BIS in Basel
Photo: Ulrich Roth

Divergent practices in how supervisors deal with non-performing assets (NPAs) hampers efforts to make cross-border comparisons, according to a study published by the Basel-based Financial Stability Institute.

“The findings reveal considerable differences across jurisdictions in applicable accounting standards, which are exacerbated by divergent prudential frameworks that govern NPA identification and measurement,” the report says. “These differences make it difficult to make meaningful

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