1. Accounting approaches played an inferior role compared to different approaches to regulate bank capital. In order to generate anticyclical capital requirements that might reduce the volatility of real activity and make resource allocation more efficient, a system of loss-absorbing risk weights is proposed. These weights would require a heavy allocation of capital when risky loans are initiated to act as a buffer for unexpected losses, but then allows these buffers to be released when losses are realized. The simulations suggest that such a scheme would be effective in stabilizing loan supply;thus loan supply. Loan growth was simulated to be strongly dependent on GDP under any accounting approach
2. The Credit Spread Puzzle
3. Ratings migration and the business cycle, with application to credit portfolio stress testing;A ; F Bangia;? Journal of Banking and Finance,2002
4. Accounting Quality and Debt Contracting;S /J Bharath;? Accounting Review,2008