Loan Loss Provision Practices in Hong Kong Banking System during 2005-2011
Ding, Huifei (2012) Loan Loss Provision Practices in Hong Kong Banking System during 2005-2011. [Dissertation (University of Nottingham only)] (Unpublished)
The aim of this dissertation is to investigate the Hong Kong banking system’s loan loss provisioning behaviour from 2005 to 2011. This research was based on a review of relevant literature and an empirical research undertake by a quantitative analysis through GMM estimation. The findings show that the Hong Kong banks’ loan loss provisions are strongly affected by the business cycle, show a procyclical trend. This suggests that when the business cycle falls, the Hong Kong banks becoming increased riskiness. In addition, there have no sign could support Hong Kong banks using loan loss provisions to smooth earnings.
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