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Provisioning, Bank Behavior and Financial Crisis: Evidence from GCC Banks

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  • Ghosh Saibal

    (Reserve Bank of India, Mumbai, India 400 00)

Abstract

The debate on bank capital regulation has in recent years devoted specific attention to the role that bank loan loss provisions play as a part of the overall minimum capital regulatory framework. Using data for 1996–2011, we find evidence in favor of both capital management and signaling behavior by GCC banks. Islamic banks appear to engage less in such behavior as compared to their non-Islamic counterparts.

Suggested Citation

  • Ghosh Saibal, 2015. "Provisioning, Bank Behavior and Financial Crisis: Evidence from GCC Banks," Review of Middle East Economics and Finance, De Gruyter, vol. 11(3), pages 249-275, December.
    • Handle: RePEc:bpj:rmeecf:v:11:y:2015:i:3:p:249-275:n:4
    DOI: 10.1515/rmeef-2015-0024
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    References listed on IDEAS

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    1. Asokan Anandarajan & Iftekhar Hasan & Cornelia McCarthy, 2007. "Use of loan loss provisions for capital, earnings management and signalling by Australian banks," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(3), pages 357-379, September.
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    4. Vincent Bouvatier & Laetitia Lepetit, 2012. "Effects of Loan Loss Provisions on Growth in Bank Lending: Some International Comparisons," International Economics, CEPII research center, issue 132, pages 91-116.
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