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Loan Loss Provisioning of US Banks : Economic Policy Uncertainty and Discretionary Behavior

Danisman, Gamze Ozturk - 2020

This paper examines the effect of economic policy uncertainty (EPU) on loan loss provisions (LLP). Using a sample of 6,384 US banks and yearly data from 2009-2019, the findings reveal that in times of higher economic policy uncertainty, banks tend to increase their loan loss provisioning....

Persistent link: https://www.econbiz.de/10012832994