Loan Loss Provisioning Behavior: The Case of Indonesia

Abstract The purpose of this dissertation is to investigate from 2011 to 2016 Indonesian banking sectors’ loan loss provision behavior through the data of selected 44 commercial banks. At first, we test the impact of X-efficiency on LLP, and the second step by using the GMM estimation and X-efficie...

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Main Author: DENG, SUYA
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Online Access:https://eprints.nottingham.ac.uk/45912/
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author DENG, SUYA
author_facet DENG, SUYA
author_sort DENG, SUYA
building Nottingham Research Data Repository
collection Online Access
description Abstract The purpose of this dissertation is to investigate from 2011 to 2016 Indonesian banking sectors’ loan loss provision behavior through the data of selected 44 commercial banks. At first, we test the impact of X-efficiency on LLP, and the second step by using the GMM estimation and X-efficiency as the endogenous variables to build the LLP model, and based on the relevant literature and empirical research to get the result. We found that in Indonesia, X-efficiency actual influence the behavior of loan loss provision and by combining the significance and positive or negative coefficients, the following theories are existence: income smoothing, business cycle. Besides, since the macroeconomic variables has huge effect on LPP the size of banks, CUSTDEPTF and COST1 also as the significant factors.
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spelling nottingham-459122018-04-17T15:13:25Z https://eprints.nottingham.ac.uk/45912/ Loan Loss Provisioning Behavior: The Case of Indonesia DENG, SUYA Abstract The purpose of this dissertation is to investigate from 2011 to 2016 Indonesian banking sectors’ loan loss provision behavior through the data of selected 44 commercial banks. At first, we test the impact of X-efficiency on LLP, and the second step by using the GMM estimation and X-efficiency as the endogenous variables to build the LLP model, and based on the relevant literature and empirical research to get the result. We found that in Indonesia, X-efficiency actual influence the behavior of loan loss provision and by combining the significance and positive or negative coefficients, the following theories are existence: income smoothing, business cycle. Besides, since the macroeconomic variables has huge effect on LPP the size of banks, CUSTDEPTF and COST1 also as the significant factors. 2017-09-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45912/1/4265015%20SUYA%20DENG.pdf DENG, SUYA (2017) Loan Loss Provisioning Behavior: The Case of Indonesia. [Dissertation (University of Nottingham only)]
spellingShingle DENG, SUYA
Loan Loss Provisioning Behavior: The Case of Indonesia
title Loan Loss Provisioning Behavior: The Case of Indonesia
title_full Loan Loss Provisioning Behavior: The Case of Indonesia
title_fullStr Loan Loss Provisioning Behavior: The Case of Indonesia
title_full_unstemmed Loan Loss Provisioning Behavior: The Case of Indonesia
title_short Loan Loss Provisioning Behavior: The Case of Indonesia
title_sort loan loss provisioning behavior: the case of indonesia
url https://eprints.nottingham.ac.uk/45912/