An analysis of loan loss provision behaviour in Chinese banking
Abstract This research investigated the loan loss provision (LLP) behaviour in Chinese commercial banks from 2011 to 2016 in detail to examine the main determinants of LLP. At the same time, variables have been divided into macro-economic factors (related to the business cycle hypothesis), non-di...
| 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/45983/ |
| _version_ | 1848797232860495872 |
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| author | LIAN, NING |
| author_facet | LIAN, NING |
| author_sort | LIAN, NING |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
This research investigated the loan loss provision (LLP) behaviour in Chinese commercial banks from 2011 to 2016 in detail to examine the main determinants of LLP. At the same time, variables have been divided into macro-economic factors (related to the business cycle hypothesis), non-discretionary (referred to the expected losses) and discretionary (income smoothing hypothesis, capital management hypothesis). As the conclusion shown, the LLP in Chinese commercial banks has a pro-cyclical behaviour, and banks in China use LLP to smooth income as well. Meanwhile, risk factors are another type of crucial factors that can impact LLP in China. However, no evidence supports that capital in Chinese commercial banks has been managed through LLP by bank managers. |
| first_indexed | 2025-11-14T20:00:37Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-45983 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:00:37Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-459832018-04-17T15:14:17Z https://eprints.nottingham.ac.uk/45983/ An analysis of loan loss provision behaviour in Chinese banking LIAN, NING Abstract This research investigated the loan loss provision (LLP) behaviour in Chinese commercial banks from 2011 to 2016 in detail to examine the main determinants of LLP. At the same time, variables have been divided into macro-economic factors (related to the business cycle hypothesis), non-discretionary (referred to the expected losses) and discretionary (income smoothing hypothesis, capital management hypothesis). As the conclusion shown, the LLP in Chinese commercial banks has a pro-cyclical behaviour, and banks in China use LLP to smooth income as well. Meanwhile, risk factors are another type of crucial factors that can impact LLP in China. However, no evidence supports that capital in Chinese commercial banks has been managed through LLP by bank managers. 2017-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45983/1/NING%20LIAN%204269609.pdf LIAN, NING (2017) An analysis of loan loss provision behaviour in Chinese banking. [Dissertation (University of Nottingham only)] Keywords: Loan loss provision; Chinese commercial banks business cycle; income smoothing; capital management; risk factors |
| spellingShingle | Keywords: Loan loss provision; Chinese commercial banks business cycle; income smoothing; capital management; risk factors LIAN, NING An analysis of loan loss provision behaviour in Chinese banking |
| title | An analysis of loan loss provision behaviour in Chinese banking |
| title_full | An analysis of loan loss provision behaviour in Chinese banking |
| title_fullStr | An analysis of loan loss provision behaviour in Chinese banking |
| title_full_unstemmed | An analysis of loan loss provision behaviour in Chinese banking |
| title_short | An analysis of loan loss provision behaviour in Chinese banking |
| title_sort | analysis of loan loss provision behaviour in chinese banking |
| topic | Keywords: Loan loss provision; Chinese commercial banks business cycle; income smoothing; capital management; risk factors |
| url | https://eprints.nottingham.ac.uk/45983/ |