Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks
This paper aims to model the determinants of Loan Losses Provisions (LLP) behaviour in Indian banks as a function of certain bank specific and macroeconomic variables. The study covering an unbalanced data of Indian banks over a period of 8 years (from 2008 to 2015) post Global Financial Crisis, exa...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36547/ |
| _version_ | 1848795301486264320 |
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| author | Famila, Maria Theresa |
| author_facet | Famila, Maria Theresa |
| author_sort | Famila, Maria Theresa |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper aims to model the determinants of Loan Losses Provisions (LLP) behaviour in Indian banks as a function of certain bank specific and macroeconomic variables. The study covering an unbalanced data of Indian banks over a period of 8 years (from 2008 to 2015) post Global Financial Crisis, examines the relationship of LLP with income smoothing, capital management, X-efficiency, Z-score and certain macro-economic variables. The study concludes that LLP is affected by more than one factor, namely X-efficiency and Z-score and also by macro economic variables such as Unemployment and Money Growth. While Z-score (bank stability) was negatively correlated with LLP as expected, X-efficiency exhibited positive relationship with LLP indicating discretionary provisioning by bank managements, which was as a countercyclical measure rather than as income smoothing. The macro variable influences were also in support of this conclusion. |
| first_indexed | 2025-11-14T19:29:55Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36547 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:29:55Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-365472017-10-19T16:57:56Z https://eprints.nottingham.ac.uk/36547/ Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks Famila, Maria Theresa This paper aims to model the determinants of Loan Losses Provisions (LLP) behaviour in Indian banks as a function of certain bank specific and macroeconomic variables. The study covering an unbalanced data of Indian banks over a period of 8 years (from 2008 to 2015) post Global Financial Crisis, examines the relationship of LLP with income smoothing, capital management, X-efficiency, Z-score and certain macro-economic variables. The study concludes that LLP is affected by more than one factor, namely X-efficiency and Z-score and also by macro economic variables such as Unemployment and Money Growth. While Z-score (bank stability) was negatively correlated with LLP as expected, X-efficiency exhibited positive relationship with LLP indicating discretionary provisioning by bank managements, which was as a countercyclical measure rather than as income smoothing. The macro variable influences were also in support of this conclusion. 2016-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36547/1/Maria_Theresa_Famila_Dissertation.pdf Famila, Maria Theresa (2016) Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks. [Dissertation (University of Nottingham only)] |
| spellingShingle | Famila, Maria Theresa Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title | Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title_full | Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title_fullStr | Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title_full_unstemmed | Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title_short | Loan Loss Provisioning Behaviour- An Empirical study of Indian Banks |
| title_sort | loan loss provisioning behaviour- an empirical study of indian banks |
| url | https://eprints.nottingham.ac.uk/36547/ |