Loan Loss Provisions Practices in Hong Kong Banking System
In the wake of the global financial crisis, the Basel Committee encourages a dynamic provisioning system. Reducing the pro-cyclical effect of loan loss provisioning is a way to achieve this. Therefore, this dissertation’s main objective is to determine if the provisioning system in Hong Kong commerc...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2015
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| Online Access: | https://eprints.nottingham.ac.uk/30126/ |
| Summary: | In the wake of the global financial crisis, the Basel Committee encourages a dynamic provisioning system. Reducing the pro-cyclical effect of loan loss provisioning is a way to achieve this. Therefore, this dissertation’s main objective is to determine if the provisioning system in Hong Kong commercial banks is pro-cyclical. Based on a sample of 35 commercial banks in Hong Kong ranging a decade from 2005 to 2014, and by applying the methodology of system GMM, this dissertation proves that the provisioning system in Hong Kong tends to follow a pro-cyclical pattern |
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