Oireachtas Joint and Select Committees
Thursday, 5 February 2015
Committee of Inquiry into the Banking Crisis
Context Phase
Professor William Black:
In fact, I am taking so much risk that on every loan I make, I lose money in real economic terms. I should have an established loss reserve, perhaps of 600 basis points, which would make it clear that I was losing money every time I made one of these loans. The international accounting rules essentially provide for the establishment of a loss reserve of zero.
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