Provisioning using the expected credit loss (ECL) approach and reducing procyclicality: implementation of IFRS 9 and US GAAP ASC 326 in the Covid-19 crisis[Provisionnement par l’approche des pertes de crédit attendues et réduction de la procyclicité : les normes IFRS 9 et US GAAP ASC 326 à l’épreuve de la crise de la Covid-19]

The article examines whether the new provisioning rules help to reduce the procyclicality of provisions, based on the Covid-19 crisis. The increased flexibility granted by accounting standards for credit loss provisions has been exacerbated by the measures taken by regulators to mitigate the impact of the crisis. From a sample of 94 listed European and American banks, we find that in 2020, impaired loans decreased and provisions for credit losses only slightly increased for European banks, despite the significant decrease of GDP. We conclude that IFRS 9, based on the expected credit losses and associated with regulatory easing measures in times of crisis, contributes to the reduction of the procyclicality of provisions.