Bank Loan Loss Provisions Behaviour: An Empirical Analysis of Indian banking industry.

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LI, TONG (2016) Bank Loan Loss Provisions Behaviour: An Empirical Analysis of Indian banking industry. [Dissertation (University of Nottingham only)]

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Abstract

This paper aims to test the determinants of loan loss provisions in Indian banking system over the sample period 2009-2014 with respect to sample bank’s efficiency performance level. We test the hypothesis of income smoothing, capital management and the business cycle, and examine whether the x-efficiency and other control variables influences loan loss provisions behaviour. In the first stage, these efficiency scores are estimated by the Stochastic Frontier Approach. And in the second stage, the Generalized Method of Moments estimator is applied in the analysis. The results of this paper are not consistent to the hypothesis of income smoothing and capital management. Indian banks do not exhibit pro or counter-cyclical provisions and x-efficiency hypothesis in this model.

Item Type: Dissertation (University of Nottingham only)
Depositing User: LI, TONG
Date Deposited: 11 Jun 2021 15:39
Last Modified: 11 Jun 2021 15:45
URI: https://eprints.nottingham.ac.uk/id/eprint/36572

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