This study examines whether banks" loan loss recognition has an effect on banks" lending after IFRS adoption. The study contributes to the accounting literature by analyzing the possibility that financial reporting process influences banks’ willingness to lend, which affects the capital availability on the macro-level. The empirical results show that after IFRS adoption the increase in loan loss provision has reduced the next quarter lending, and the effect was not associated with capital regulation. On the other hand, the change in loan loss reserve, which is required by supervisory regulation, has not affected the next quarter lending. Similarly, the change in loan loss provision before IFRS adoption during which the provision was determined by supervisory regulation did not affect the next quarter lending. When the expected credit losses from the credit portfolio increase, banks have incentives to reduce new lending in order to manage profitability. The results that the change in loan loss provision under IFRS affects new lending imply that banks adjust credit supply according to the loan loss allowance, because the credit loss recognition under IFRS reflects economic information regarding banks" credit risk. Expected loss model from IFRS 9 will lead to earlier loan loss recognition. Based on the findings in this study, it can be conjectured that earlier loss recognition will help banks" managers notice the increase in credit risk and adjust banks" credit supply sooner. This will mitigate the pro-cyclicality of banks" lending.