Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks
The loan loss provision system is an important part of bank risk management. Through analysing the panel data of 70 Chinese commercial banks from 2011 to 2016, we found the determinants of loan loss provision in Chinese banking. Also, we tested three hypothesis which are income smoothing, capital ma...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2017
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| Online Access: | https://eprints.nottingham.ac.uk/45828/ |
| _version_ | 1848797200911433728 |
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| author | LUO, ANNI |
| author_facet | LUO, ANNI |
| author_sort | LUO, ANNI |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The loan loss provision system is an important part of bank risk management. Through analysing the panel data of 70 Chinese commercial banks from 2011 to 2016, we found the determinants of loan loss provision in Chinese banking. Also, we tested three hypothesis which are income smoothing, capital management and the business cycle by the Generalized method of moments (GMM). X-efficiency is another variable affecting provisioning behaviour and we estimated it through Stochastic frontier analysis (SFA). Our empirical results showed that there are strong evidence supporting the income smoothing motivation and pro-cyclical provision behaviour. However, there is no convincing evidence for capital management behaviour in Chinese banking system. |
| first_indexed | 2025-11-14T20:00:06Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-45828 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:00:06Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-458282018-04-17T15:15:47Z https://eprints.nottingham.ac.uk/45828/ Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks LUO, ANNI The loan loss provision system is an important part of bank risk management. Through analysing the panel data of 70 Chinese commercial banks from 2011 to 2016, we found the determinants of loan loss provision in Chinese banking. Also, we tested three hypothesis which are income smoothing, capital management and the business cycle by the Generalized method of moments (GMM). X-efficiency is another variable affecting provisioning behaviour and we estimated it through Stochastic frontier analysis (SFA). Our empirical results showed that there are strong evidence supporting the income smoothing motivation and pro-cyclical provision behaviour. However, there is no convincing evidence for capital management behaviour in Chinese banking system. 2017-09-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45828/1/ANNI%20LUO%20%20dissertation.pdf LUO, ANNI (2017) Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks. [Dissertation (University of Nottingham only)] loan loss provision income smoothing capital management business management |
| spellingShingle | loan loss provision income smoothing capital management business management LUO, ANNI Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title | Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title_full | Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title_fullStr | Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title_full_unstemmed | Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title_short | Loan Loss Provision：Management Behaviour and Pro-cyclicality of Chinese Banks |
| title_sort | loan loss provision：management behaviour and pro-cyclicality of chinese banks |
| topic | loan loss provision income smoothing capital management business management |
| url | https://eprints.nottingham.ac.uk/45828/ |