DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS

This study focusses on the factors affecting loan loss provisioning behaviour in Indian commercial banks. It tests the income smoothing, capital management and business cycle hypothesis for the same using the Generalized Method of Moments (GMM).In addition, it tests for relationship between cost eff...

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Main Author: AGARWAL, ANUSHREE PRADEEPKUMAR
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2016
Online Access:https://eprints.nottingham.ac.uk/36822/
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author AGARWAL, ANUSHREE PRADEEPKUMAR
author_facet AGARWAL, ANUSHREE PRADEEPKUMAR
author_sort AGARWAL, ANUSHREE PRADEEPKUMAR
building Nottingham Research Data Repository
collection Online Access
description This study focusses on the factors affecting loan loss provisioning behaviour in Indian commercial banks. It tests the income smoothing, capital management and business cycle hypothesis for the same using the Generalized Method of Moments (GMM).In addition, it tests for relationship between cost efficiency of banks and loan loss provisioning where cost efficiency is estimated using the Stochastic Frontier Analysis.The results suggest that Indian commercial banks do not use loan loss provisioning for smoothing income or managing regulatory capital. It does find a countercyclical relation of provisioning with the business cycle. The study reveals that cost efficiency does not have a relationship with loan loss provisioning behaviour.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
last_indexed 2025-11-14T19:30:43Z
publishDate 2016
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spelling nottingham-368222017-10-19T17:05:15Z https://eprints.nottingham.ac.uk/36822/ DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS AGARWAL, ANUSHREE PRADEEPKUMAR This study focusses on the factors affecting loan loss provisioning behaviour in Indian commercial banks. It tests the income smoothing, capital management and business cycle hypothesis for the same using the Generalized Method of Moments (GMM).In addition, it tests for relationship between cost efficiency of banks and loan loss provisioning where cost efficiency is estimated using the Stochastic Frontier Analysis.The results suggest that Indian commercial banks do not use loan loss provisioning for smoothing income or managing regulatory capital. It does find a countercyclical relation of provisioning with the business cycle. The study reveals that cost efficiency does not have a relationship with loan loss provisioning behaviour. 2016-09-15 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36822/1/Anushree%204257080.pdf AGARWAL, ANUSHREE PRADEEPKUMAR (2016) DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS. [Dissertation (University of Nottingham only)]
spellingShingle AGARWAL, ANUSHREE PRADEEPKUMAR
DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title_full DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title_fullStr DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title_full_unstemmed DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title_short DETERMINANTS OF LOAN LOSS PROVISIONING BEHAVIOUR IN INDIAN COMMERCIAL BANKS
title_sort determinants of loan loss provisioning behaviour in indian commercial banks
url https://eprints.nottingham.ac.uk/36822/