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Does faster loan growth lead to higher loan losses?

Keeton, William R. - In: Economic review 84 (1999) 2, pp. 57-75

Persistent link: https://www.econbiz.de/10001411390

Dynamic Loan Loss Provisioning : Simulations on Effectiveness and Guide to Implementation

Wezel, Torsten - 2012

This simulation-based paper investigates the impact of different methods of dynamic provisioning on bank soundness and shows that this increasingly popular macroprudential tool can smooth provisioning costs over the credit cycle and lower banks' probability of default. In addition, the paper...

Persistent link: https://www.econbiz.de/10013102287

Dynamic Loan Loss Provisioning : Simulations on Effectiveness and Guide to Implementation

Wezel, Torsten - 2012

Persistent link: https://www.econbiz.de/10013106733

Effects of Loan Loss Provisions on Growth in Bank Lending : Some International Comparisons

Bouvatier, Vincent - 2014

A dynamic provisioning system is one of the instruments that regulators could use for introducing counter-cyclicality into prudential regulation. The potential effectiveness of such instrument depends on how far actual backward-looking provisioning practices exacerbate growth in bank lending. We...

Persistent link: https://www.econbiz.de/10013069376

Bank Loan Loss Provisions Research : A Review

Ozili, Peterson K - 2017

We review the recent academic and policy literature on bank loan loss provisioning (LLP) to identify several advances … smoothing, methodological issues in the bank loan loss provisions literature and the dynamic loan loss provisioning experiment …

Persistent link: https://www.econbiz.de/10012964664

Are incurred loss standards countercyclical? : a case study using U.S. bank holding company data

Du, Fang; Hancock, Diana; Hafften, Alexander H. von - In: Journal of risk and financial management : JRFM 15 (2022) 3, pp. 1-30

After the 2008 global financial crisis, U.S. bank holding companies needing to cover larger-than-expected loan losses raised concerns that existing provision accounting may be procyclical. Most related studies have found evidence of procyclicality using either aggregate time-series data or...

Persistent link: https://www.econbiz.de/10013161851

Discretionary loan loss provisioning and bank stock returns : the role of economic booms and busts

Hegde, Shantaram P.; Kozlowski, Steven E. - In: Journal of banking & finance 130 (2021), pp. 1-26

Persistent link: https://www.econbiz.de/10013164859

Institutional Ownership and Income Smoothing by Japanese Banks Through Loan Loss Provisions

Kwak, Wikil - 2010

This paper examines the association between institutional ownership and income smoothing through bank loan loss … of banks increases, income smoothing via loan loss provisions increases. Additional tests show that there is a …

Persistent link: https://www.econbiz.de/10013150616

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 … tend to increase their loan loss provisioning. Considering the four components of EPU (the news-based, tax expirations … majority of the explanatory power on loan loss provisions originates from news-based and tax expiration indices. Moreover, US …

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

Switching From Incurred to Expected Loan Loss Provisioning : Early Evidence

López-Espinosa, Germán - 2020

This paper provides early evidence on the effect of global regulation mandating a switch from loan loss provisioning … disclosures on the first-time impact of the accounting change; we find that a higher impact on loan loss allowances elicits lower …

Persistent link: https://www.econbiz.de/10012833812