Loan loss provisioning practices of Asian banks
AbstractIn the wake of the Asian financial crisis, many regimes in Asia adopted stricter provisioning requirements, as well as discretionary measures, with the objective of increasing provisioning in good times in response to rising levels of risk. Based on a final sample of 240 banks in 12 Asian economies, the evidence is that countercyclical loan loss provisioning has dominated throughout emerging Asia, most strikingly so in the case of India. Thus, loan loss provisioning did not simply become more conservative at all points in time subsequent to the Asian financial crisis, but actively leaned in a fashion that ameliorated swings in earnings and the macroeconomy.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 375.
Length: 31 pages
Date of creation: Apr 2012
Date of revision:
Loan loss provisioning; financial system procyclicality; international accounting standards; earnings smoothing; macroprudential policy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-BAN-2012-04-17 (Banking)
- NEP-CBA-2012-04-17 (Central Banking)
- NEP-CWA-2012-04-17 (Central & Western Asia)
- NEP-SEA-2012-04-17 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Bank provisioning behaviour and procyclicality,"
Research Series Supervision (discontinued)
50, Netherlands Central Bank, Directorate Supervision.
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UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
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