Loan loss reserves make up an essential part of a bank's soundness and more generally its viability. An under … supervisory authorities and investors regularly assess the adequacy of the loan loss provisions alongside the more popular capital … ratios. The aim of the paper is to identify what motivates the loss provisioning policies employed by Belgian banks …

Prior research shows that banks have strong incentives to use loan loss provisions to smooth income. Using a sample of …, bank holding companies accelerate loan loss provisions to smooth income when (1) banks hit the regulatory minimum target … ratios are relatively more significant than regulatory‐set ratios to trigger income smoothing behaviour using loan loss …

I investigate the accounting rules for loan loss recognition in banks. In June 2016 the FASB issued a new rule … loan loss allowances. To empirically examine current GAAP and the new model, I exploit differences in the information sets … provide evidence that it is possible to construct a loan loss recognition model that outperforms the current GAAP without …

We investigate the role of loan loss provisions (LLPs) for bank earnings management and risk provisioning. First, banks …