An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks
This study examines Cost Efficiency and Loan loss provisioning in Hong Kong commercial banks between the years 2009-2014 for a sample of 23 banks. While much research explores discretionary provision determinants we argue that it is also important to access non-discretionary determinants of loan los...
| Main Author: | |
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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/30271/ |
| _version_ | 1848793954295742464 |
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| author | Latheef, Fathmath Aroosha |
| author_facet | Latheef, Fathmath Aroosha |
| author_sort | Latheef, Fathmath Aroosha |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study examines Cost Efficiency and Loan loss provisioning in Hong Kong commercial banks between the years 2009-2014 for a sample of 23 banks. While much research explores discretionary provision determinants we argue that it is also important to access non-discretionary determinants of loan loss provisioning as well. So along with income smoothing, capital management hypothesis we further investigate cost efficiency and bank insolvency (Z-score) as possible determinants of loan loss provisions. To do so we use Cost efficiency function using SFA and a dynamic system GMM is used for Loan loss provisions model. We find that for Hong Kong commercial banks Counter-cyclical provisioning, capital management hypothesis apply and Efficiency is an important determinant of loan loss provisions in Hong Kong. |
| first_indexed | 2025-11-14T19:08:30Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-30271 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:08:30Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-302712018-01-02T06:50:47Z https://eprints.nottingham.ac.uk/30271/ An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks Latheef, Fathmath Aroosha This study examines Cost Efficiency and Loan loss provisioning in Hong Kong commercial banks between the years 2009-2014 for a sample of 23 banks. While much research explores discretionary provision determinants we argue that it is also important to access non-discretionary determinants of loan loss provisioning as well. So along with income smoothing, capital management hypothesis we further investigate cost efficiency and bank insolvency (Z-score) as possible determinants of loan loss provisions. To do so we use Cost efficiency function using SFA and a dynamic system GMM is used for Loan loss provisions model. We find that for Hong Kong commercial banks Counter-cyclical provisioning, capital management hypothesis apply and Efficiency is an important determinant of loan loss provisions in Hong Kong. 2015-09-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30271/1/Cost%20Efficiency%20and%20Loan%20Loss%20Provisioning%20Behaviour%20in%20Hong%20Kong.pdf Latheef, Fathmath Aroosha (2015) An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks. [Dissertation (University of Nottingham only)] loan loss provisioning hong kong banking |
| spellingShingle | loan loss provisioning hong kong banking Latheef, Fathmath Aroosha An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title_full | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title_fullStr | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title_full_unstemmed | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title_short | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Hong Kong Commercial Banks |
| title_sort | analysis of cost efficiency and loan loss provisioning behaviour in hong kong commercial banks |
| topic | loan loss provisioning hong kong banking |
| url | https://eprints.nottingham.ac.uk/30271/ |