Bank Loan-Loss Provisions: A study of Korean Commercial Banks
This paper studies the bank loan-loss provisioning behaviour of 16 Korean commercial banks over the 2006Q2-2011Q2 period using both bank-specific and macroeconomic variables. Two regression methods: Generalised Least Squares- Random Effects model and the Dynamic Panel Data Arellano-Bond model are ap...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English English |
| Published: |
2013
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| Online Access: | https://eprints.nottingham.ac.uk/26384/ |
| _version_ | 1848793167311142912 |
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| author | Do, Phuong Nhu |
| author_facet | Do, Phuong Nhu |
| author_sort | Do, Phuong Nhu |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper studies the bank loan-loss provisioning behaviour of 16 Korean commercial banks over the 2006Q2-2011Q2 period using both bank-specific and macroeconomic variables. Two regression methods: Generalised Least Squares- Random Effects model and the Dynamic Panel Data Arellano-Bond model are applied. The empirical analysis on LLPs of Korean banks in this paper mainly focus on the following issues: 1) whether LLP is influenced by the income smoothing practice; 2) the relationship between LLP practice and the economic cycle; 3) whether Korean banks use provisions to manage their capital given the minimum regulatory capital requirements; 4) whether LLP level in Korean banks are affected by their provision level of the last period. Evidence of income smoothing practice, procyclicality is present but there is no evidence of capital management. The result also suggests Korean banks adjust provision level based on that of the previous year. |
| first_indexed | 2025-11-14T18:55:59Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-26384 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T18:55:59Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-263842022-03-29T16:08:27Z https://eprints.nottingham.ac.uk/26384/ Bank Loan-Loss Provisions: A study of Korean Commercial Banks Do, Phuong Nhu This paper studies the bank loan-loss provisioning behaviour of 16 Korean commercial banks over the 2006Q2-2011Q2 period using both bank-specific and macroeconomic variables. Two regression methods: Generalised Least Squares- Random Effects model and the Dynamic Panel Data Arellano-Bond model are applied. The empirical analysis on LLPs of Korean banks in this paper mainly focus on the following issues: 1) whether LLP is influenced by the income smoothing practice; 2) the relationship between LLP practice and the economic cycle; 3) whether Korean banks use provisions to manage their capital given the minimum regulatory capital requirements; 4) whether LLP level in Korean banks are affected by their provision level of the last period. Evidence of income smoothing practice, procyclicality is present but there is no evidence of capital management. The result also suggests Korean banks adjust provision level based on that of the previous year. 2013-05-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26384/1/LLP_Korean_Banks_PhuongNhu_DO.pdf application/pdf en https://eprints.nottingham.ac.uk/26384/2/LLP_Korean_Banks_PhuongNhu_DO.pdf Do, Phuong Nhu (2013) Bank Loan-Loss Provisions: A study of Korean Commercial Banks. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Do, Phuong Nhu Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title | Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title_full | Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title_fullStr | Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title_full_unstemmed | Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title_short | Bank Loan-Loss Provisions: A study of Korean Commercial Banks |
| title_sort | bank loan-loss provisions: a study of korean commercial banks |
| url | https://eprints.nottingham.ac.uk/26384/ |