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      "text": "Refer to \"Note 1 Summary of material accounting policies\" in the \"Consolidated financial statements\" section of this report for more information about our accounting policy for allowances and provisions for ECL.",
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      "text": "The IFRS 9 expected credit loss (ECL) concept has a number of key differences from our standard credit risk models, both in the loss estimation process and the result thereof.",
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      "text": "We assess exposures where there is a material correlation between the factors driving the credit quality of the counterparty and those driving the potential future value of our traded products exposure (wrong-way risk).",
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      "text": "Comparison of Basel III EL and IFRS 9 ECL credit risk models: The IFRS 9 expected credit loss (ECL) concept has a number of key differences from our standard credit risk models. Stage 1 and 2 ECL releases in 2021 were USD 123 million.",
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      "text": "Loss given default: LGD is the magnitude of the likely loss if there is a default. Our LGD estimates consider downturn conditions, including loss of principal, interest and other amounts less recovered amounts.",
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      "text": "Expected credit loss: ECL are defined as the difference between contractual cash flows and those UBS expects to receive, discounted at the effective interest rate (EIR).",
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      "text": "Expected credit loss: Credit losses are an inherent cost of doing business. We use the concept of expected loss to quantify future credit losses that may be implicit in our current portfolio.",
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