Loan Loss Provisioning in Chinese Commercial Banks

Zhang, Qiuyi (2016) Loan Loss Provisioning in Chinese Commercial Banks. [Dissertation (University of Nottingham only)]

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Abstract

The object of this paper is to jointly test the existence of income smoothing, capital management behavior and procyclicality with respect to Chinese commercial banks' provisioning during 2009-2014. Our results provide evidence for income smoothing behavior and procyclical provisioning, but we find no evidence for capital management behavior. In order to address the problems of income smoothing and procyclical provisioning, we give the following suggestions. Bank regulators should further promote the implementation of Basel III regimes among Chinese commercial banks. The dynamic provisioning practice should be promoted and the accounting disclosure requirements should be improved. Besides, bank regulators should require banks to write off uncollectible loans in time and should also strengthen the supervision and scrutiny of banks' activities.

Item Type: Dissertation (University of Nottingham only)
Keywords: loan loss provisions, China, GMM, SFA
Depositing User: Zhang, Qiuyi
Date Deposited: 10 Mar 2017 09:43
Last Modified: 13 Mar 2017 12:24
URI: http://eprints.nottingham.ac.uk/id/eprint/36596

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