062611e1_anual_for_asset_quality_review__Description
[0] 7 [Working block] Collective provision analysis [Description] 
Smaller, homogeneous, impaired exposures are typically provisioned using a collective provisioning approach – that is, a point-in-time statistical model of incurred loss. Similarly, general provisions are usually set using collective models for the whole portfolio. In order to verify that provisioning levels are appropriate, it is critical to ensure that collective provisioning models are fully aligned with the letter and spirit of accounting rules (International Accounting Standards (IAS) 39 or national generally accepted accounting principles).
ECB publishes manual for asset quality review
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