Loan loss provisions

This study examines the relationship between bank efficiency and earnings management (EM) using a large sample of banks from 22 frontier market countries from 2011 - 2018, We hypothesise that EM via loan loss provision (LLP) and loan loss reserves (LLR) adversely impacts bank efficiency. Employing stochastic frontier analysis as a technical efficiency measurement, and random effects and truncated regression to reveal their relationship, we find support for this prediction. Also, in three of the five geographic regions tested, efficiency scores are higher for larger banks.

19p alucardhellsing 04-05-2022 21 3   Download

Mục tiêu nghiên cứu nhằm xác định các nhân tố tác động đến dự phòng rủi ro tín dụng (Loan Loss Provision- LLP và đo lường mức độ ảnh hưởng của các nhân tố đến dự phòng rủi ro tín dụng tại các NHTM Việt Nam giai đoạn từ năm 2008 đến năm 2014. Mời các bạn cùng tham khảo.

78p sonhalenh01 06-06-2021 11 3   Download

The CECL revised accounting standard for credit loss provisioning is intended to represent a forward-looking and proactive methodology that is conditioned on expectations of the economic cycle. In this study we analyze the impact of several modeling assumptions - such as the methodology for projecting expected paths of macroeconomic variables, incorporation of bank-specific variables or the choice of macroeconomic variables – upon characteristics of loan loss provisions, such as the degree of pro-cyclicality.

48p nguyenanhtuan_qb 09-07-2020 41 2   Download

This aim of research is to prove that the loan-loss provision and fair value accounting influence the earnings volatility and the accrual management role in moderating the effect of fair value accounting to earnings volatility. Data were obtained from the annual report of the Directory of Indonesia Capital Market and the Stock Exchange of Indonesia Website.

8p tociitocii 24-04-2020 18 0   Download

The purpose of this study was to examine the effect of credit risk management on the performance of selected listed commercial banks in Ghana. The study used secondary data collected from seven (7) banks listed on the Ghana Stock Exchange for a period of ten (10) years covering 2007-2016 with a total of seventy (70) observations.

10p tociitocii 24-04-2020 39 2   Download

The author presented the results of research based on the extreme values theory, the conditional loss distribution function and the profitability analysis of the loan portfolio. The achieved outcomes has been shown in the context of the provisions of the New Basel Capital Accord and the subsequent consultation documents published by the Basel Committee on Banking Supervision. It was shown that losses caused by the rare but still plausible events could significantly exceed the minimum capital requirements estimated in accordance with IRB method.

15p nguyenminhlong19 21-04-2020 13 2   Download

This article tries to explore earnings management of Taiwanese banking industry. It adjusts the Shen (2008) Model to measure loan loss provision earnings management of banks, and following Jones Model (1991) and Dechow Model (1995) reclassifies non-discretionary and discretionary items to detect accrued earnings management of banks. The empirical results show that banks downward earnings are different to pre-reclassifying discretionary earnings management, and banks employ loan loss provision earnings management upward earnings.

13p trinhthamhodang2 21-01-2020 11 0   Download

This paper investigates whether investors in P2P online lending platforms in China are rational. In China, most P2P platforms run a guarantee mechanism using loan loss provision. I take into account the effect of the guarantee mechanism on loan's cash flow and calculate expected internal rate of return of each loan. The empirical results show evidence against rationality assumption. Firstly, expected return calculated under guarantee mechanism of a loan in China is not only affected by systematic risk, but also by idiosyncratic risk.

15p trinhthamhodang2 21-01-2020 18 1   Download

The paper employs regression analysis to explore operations of loan loss provisions in Vietnamese commercial banks in 2008-2012 in its relationship with bank characteristics. The paper provides theoretical evidence of the opportunism in selection of accounting policy concerning loan risk management by Vietnamese bank managers.

18p danhnguyentuongvi27 18-12-2018 35 1   Download

These relationships are shown in three figures. Figure 2 shows that it is operating costs, rather than capital costs or loan loss provisions, that that drive the differences in total costs between different kinds of microfinance institutions. Figure 3 shows that the institutions that make the smallest loans on average are also the institutions that face the highest costs per unit lent (a result that holds up in regressions after controlling for institutions’ age, inflation, country- level governance, GDP growth, region, and lending method).

40p taisaovanchuavo 23-01-2013 53 6   Download