Bank Branching Applications and Window Dressing : Evidence on Banks’ Strategic Use of Loan Loss Provisions
After the removal of geographic restrictions on branching in 2006, China’s city commercial banks (CCBs) can apply for permission to branch outside their province. This paper shows that CCBs report higher loan loss provisions before filing an application, thereby increasing the provision coverage ratio of nonperforming loans and making the bank look safer to regulators.Our finding is robust to controlling for possible endogeneity of the branching application decision by employing propensity score matching estimators, and it is confirmed when we consider a quasi-natural experiment of deregulation reversal
Year of publication: |
[2021]
|
---|---|
Authors: | Gong, Di ; Huizinga, Harry ; Li, Tianshi ; Zhu, Jigao |
Publisher: |
[S.l.] : SSRN |
Subject: | Bank | Kreditgeschäft | Bank lending | Kreditrisiko | Credit risk | Bilanzpolitik | Accounting policy |
Saved in:
freely available
Extent: | 1 Online-Ressource (50 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 8, 2021 erstellt |
Other identifiers: | 10.2139/ssrn.3882259 [DOI] |
Classification: | G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation ; M41 - Accounting |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013217881
Saved in favorites
Similar items by subject
-
Loan Loss Provisioning and Income Smoothing in US Banks Pre and Post the Financial Crisis
Abou-El-Sood, Heba, (2017)
-
Ozili, Peterson K, (2017)
-
Bank Earnings Management Through Loan Loss Provisions : A Double-Edged Sword?
Norden, Lars, (2014)
- More ...
Similar items by person