An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks
This paper investigates loan loss provisioning (LLP) behaviour by Chinese banks during the period 2011-2015. We test the income-smoothing, capital management, and business cycle hypotheses, in the meanwhile, test whether the cost efficiency has the influence on LLP behaviour. Our results show that C...
| 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/47012/ |
| _version_ | 1848797448718254080 |
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| author | LI, WANYING |
| author_facet | LI, WANYING |
| author_sort | LI, WANYING |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper investigates loan loss provisioning (LLP) behaviour by Chinese banks during the period 2011-2015. We test the income-smoothing, capital management, and business cycle hypotheses, in the meanwhile, test whether the cost efficiency has the influence on LLP behaviour. Our results show that Chinese commercial banks have a high level of cost efficiency but it does not affect the LLP behaviour. And there is no evidence that Chinese commercial banks have income smoothing and capital management behaviour, while the results reflect that Chinese commercial banks have pro-cyclical provisioning behaviour. Besides, we find that lagged term of loan loss provisions, total interest income on loans, growth of gross loans and non-performing loans have influences on provisioning behaviour. At last, some advice is proposed on how to mitigate pro-cyclical provisioning behaviour. |
| first_indexed | 2025-11-14T20:04:03Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-47012 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:04:03Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-470122018-04-17T14:54:28Z https://eprints.nottingham.ac.uk/47012/ An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks LI, WANYING This paper investigates loan loss provisioning (LLP) behaviour by Chinese banks during the period 2011-2015. We test the income-smoothing, capital management, and business cycle hypotheses, in the meanwhile, test whether the cost efficiency has the influence on LLP behaviour. Our results show that Chinese commercial banks have a high level of cost efficiency but it does not affect the LLP behaviour. And there is no evidence that Chinese commercial banks have income smoothing and capital management behaviour, while the results reflect that Chinese commercial banks have pro-cyclical provisioning behaviour. Besides, we find that lagged term of loan loss provisions, total interest income on loans, growth of gross loans and non-performing loans have influences on provisioning behaviour. At last, some advice is proposed on how to mitigate pro-cyclical provisioning behaviour. 2017-10-05 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/47012/1/wanying%20li%20dissertation.pdf LI, WANYING (2017) An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks. [Dissertation (University of Nottingham only)] |
| spellingShingle | LI, WANYING An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title_full | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title_fullStr | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title_full_unstemmed | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title_short | An Analysis of Cost Efficiency and Loan Loss Provisioning Behaviour in Chinese Commercial Banks |
| title_sort | analysis of cost efficiency and loan loss provisioning behaviour in chinese commercial banks |
| url | https://eprints.nottingham.ac.uk/47012/ |