In EU only Italian banks can write a provision for possible losses on loans called "Credit Risk Fund" in Financial Statements. Its nature is controversial: it's not strictly a reserve, but it's part of Capital, it's fiscally deductable as a provision. The analysis shows that often it's mis-used for tax policy purposes. If the Credit Risk Fund is not used for tax puposes, it's very similar to General Banking Risks Fund. It causes a lack of comparability between Italian Financial Statements and european ones.
Alcune riflessioni sul Fondo rischi su crediti nel bilancio delle imprese bancarie
FIUME, Raffaele
1999-01-01
Abstract
In EU only Italian banks can write a provision for possible losses on loans called "Credit Risk Fund" in Financial Statements. Its nature is controversial: it's not strictly a reserve, but it's part of Capital, it's fiscally deductable as a provision. The analysis shows that often it's mis-used for tax policy purposes. If the Credit Risk Fund is not used for tax puposes, it's very similar to General Banking Risks Fund. It causes a lack of comparability between Italian Financial Statements and european ones.File in questo prodotto:
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