The expected loss approach (ECL) defined by IFRS 9 replaced the old incurred loss approach (IAS 39) in the international accounting standard setter. In Europe, the IFRS 9 are accompanied by new regulatory frameworks (BCBS), opinion, technical standards (EBA) which do not always provide the same methodological and operational implications of the accounting standard setter. Many aspects of IFRS 9 have been studied, but this paper analyzes its interdependencies and overlaps with the credit risk framework for financial intermediaries (also Basel 3). Using a case study, the purpose of this paper is to investigate the ECL, its main impacts on coverage ratio of a loan’s portfolio. The main findings are: usually, the rules laid down for Stage 1 of IFRS 9 do not reduce the excess coverage produced on a portfolio in bonis; in the presence of impaired loans IAS 39 generates a lack of funds; the lifetime ECL (Stage 2 of IFRS 9) imposes excess of provisions because it does not consider the effect of coverage produced by expected premiums; for loan portfolios with short repayment times, the excess of provisions produced by IFRS 9 compensates the lack of coverage of the capital requirement. From the academic research perspective, this paper contributes to the literature on ECL model in several ways. First, it adds knowledge to the research on the relationship between Credit Risk Management framework and accounting standard IFRS 9. Second, it also links our findings related to ECL approach with potential implications for the financial sector, policymakers and regulators.

According to the bio-ecological model, individuals are highly influenced by the context and dynamic interactions occurring within their environment over time. Therefore, prolonged shared contexts that people are exposed to, such as the higher education system, should contribute to more similarities in their cognition. We examine two research models, specifying the influence of the national higher education system as a variable, that moderates the potential relationship between the students’ country of origin and their prosocial (Model 1) and pro-environmental (Model 2) attitudes. Two culturally similar countries (Croatia and Italy) and two student subsamples from both countries (one group with social science and humanities majors and another with business and economics major) are considered. We used A. F. Hayes’ PROCESS macro to estimate the results using the regression approach. The research results show statistically significantmoderated relationships between study major and prosocial and pro-environmental attitudes. However, the national HE contexts, when considered as moderating variables, suppressed the main effects in both models. We discuss possible explanations of the suppression of the main effect by the conditional one, outline implications of the present findings and provide guidelines for future research.

Since banks and insurance companies are financial institutions dealing with risks in various aspects of their business, it is important to make a general approach to the issue of risk and risk management from the perspective of these institutions. In that regard, we made a short overview of the risks these institutions are faced to as well as the methods they use for risk assessments. In order to limit our research to specific financial markets, we provided the basic characteristics of bank and insurance markets of Southeastern Europe (SEE), presenting the core indicators of development level of these markets and their legal and institutional environment related to new regulation proposed in Europe. We analyzed the level of implementation of Basel and Solvency risk assessment standards in these countries and tried to anticipate direction(s) where these markets are going to move in the coming period.

In banks/enterprises relationships a key role is played by Basel II Framework, which accurately correlates banks’ capital requirement to risks, by stimulating a more precise creditworthiness assessment. As known, the containment of risks inherent in bank financing can be carried out ex ante, through an adequate screening, which allows the proper assessment of enterprises’ economic and financial situation and a sound composition of the total loan portfolio, and ex post, through guarantees, which allow benefiting from a loss reduction only after insolvency has occurred. From this perspective, Basel II Framework brings important changes, since life insurance and surety policy are “eligible” guarantees for Credit Risk Mitigation. Nevertheless, banks could offer a better pricing to borrowers not because they are less risky, but because the whole operation would need a lower capital requirement. Therefore, corporate risks reduction – which would allow, in the absence of credit rationing, a more profitable debt capacity – is necessarily achieved through an appropriate “umbrella insurance”, able to cope with both direct and indirect loss. This work aims at investigating the existence of a “virtuous” relationship among corporate insurance purchases, credit risk and debt capacity. Such aim has been pursued through different steps: review of literature, to identify the reasons of corporate demand for insurance; analysis of Italian enterprises’ corporate insurance purchases; drafting of a questionnaire, to submit to a sample of the main insurance companies working in Italy, intended to identify what kind of role they play in the relation with enterprises and which insurance products they offer; drafting of a questionnaire, to submit to a sample of the main banks working in Italy, intended to investigate whether and how the possession of corporate insurance is taken into consideration in the determination of enterprises’ creditworthiness.

Moral reasoning and consequent decision making are central in the everyday life of all people, independent of their profession. It is undoubtedly crucial in the so-called “helping professions”, when the professional through his/her decisions can support or not support others. Our study aimed to investigate whether academic training can play an essential role in influencing moral reasoning. We used three different conditions: 20 moral personal, 20 moral impersonal, and 20 nonmoral dilemmas to assessed differences in moral judgement between students of Economics, Medicine, and Psychology at their first year and at the end of university training. We observed a difference between school and year of course: psychology students showing more time when asked to read and answer the proposed questions. Moreover, medical students showed a significant increase in sensitiveness to moral issues as a function of academic ageing, whereas such a moral sense regressed from the first to the fifth year of academic training in other students. Gender was also relevant, with women showing an increased response and reading times compared to than men when asked to cope with moral decisions. This study shows that the main factor driving moral decision making is the faculty to which one is enrolled, significantly modulated by sex and academic seniority.