The IASB has issued exposure drafts with an expected loss model which attempts to mitigate these shortcomings by recognizing losses and making provisions thereof earlier during the life of the loan. However, presently, IASB and FASB’s deliberations revolve around a three bucket approach to capture the pattern of deterioration in credit quality.
BIS Review 50/1997  -4-  There is, no doubt, a substantial element of truth in these observations, as I have often noted in the past. Computer and telecommunication based technologies are truly revolutionizing the way we produce goods and services.