Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom
This timely empirical study investigates the determinants of loan loss provisioning for commercial banks in the United Kingdom. A sample of 23 commercial banks in the UK are used in a dynamic panel dataset covering a period of 8 years from 2006 to 2013. This period is of great value for research sin...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2014
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| Online Access: | https://eprints.nottingham.ac.uk/27463/ |
| _version_ | 1848793375764905984 |
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| author | Li, Yuzhu |
| author_facet | Li, Yuzhu |
| author_sort | Li, Yuzhu |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This timely empirical study investigates the determinants of loan loss provisioning for commercial banks in the United Kingdom. A sample of 23 commercial banks in the UK are used in a dynamic panel dataset covering a period of 8 years from 2006 to 2013. This period is of great value for research since it covers a period of transition from Basel I to II and global financial crisis from 2008 to 2009. Loan loss provisions are found to be procyclical with a negative relationship with GDP growth rate during this period. Income smoothing and capital management were also found to be significant in this study. Z-score, which measures insolvency risk, is found to be negatively related to LLPs. It indicated that a high of loan loss provisions is associated with insolvency to a certain degree. However, there is no evidence showing that technical efficiency affects loan loss provisions of commercial banks in the UK. |
| first_indexed | 2025-11-14T18:59:18Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-27463 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:59:18Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-274632017-10-19T14:02:54Z https://eprints.nottingham.ac.uk/27463/ Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom Li, Yuzhu This timely empirical study investigates the determinants of loan loss provisioning for commercial banks in the United Kingdom. A sample of 23 commercial banks in the UK are used in a dynamic panel dataset covering a period of 8 years from 2006 to 2013. This period is of great value for research since it covers a period of transition from Basel I to II and global financial crisis from 2008 to 2009. Loan loss provisions are found to be procyclical with a negative relationship with GDP growth rate during this period. Income smoothing and capital management were also found to be significant in this study. Z-score, which measures insolvency risk, is found to be negatively related to LLPs. It indicated that a high of loan loss provisions is associated with insolvency to a certain degree. However, there is no evidence showing that technical efficiency affects loan loss provisions of commercial banks in the UK. 2014 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27463/1/Yuzhu_Li_MSc_Banking_and_Finance.pdf Li, Yuzhu (2014) Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Li, Yuzhu Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title | Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title_full | Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title_fullStr | Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title_full_unstemmed | Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title_short | Determinants of Loan Loss Provisioning for Commercial Banks in the United Kingdom |
| title_sort | determinants of loan loss provisioning for commercial banks in the united kingdom |
| url | https://eprints.nottingham.ac.uk/27463/ |