Journal
JOURNAL OF FINANCIAL INTERMEDIATION
Volume 12, Issue 2, Pages 178-197Publisher
ACADEMIC PRESS INC ELSEVIER SCIENCE
DOI: 10.1016/S1042-9573(03)00016-0
Keywords
banks; bank regulation; loan loss provisions
Categories
Ask authors/readers for more resources
Only recently the debate on bank capital regulation has devoted specific attention to the role that bank loan loss provisions can play as a part of the overall capital regulatory framework. This paper contributes to the ongoing debate by demonstrating empirically that loan loss provisioning needs to be an integral component of capital regulation. We find empirical evidence that many banks around the world delay provisioning for bad loans until too late, when cyclical downturns have already set in, thereby magnifying the impact of the economic cycle on banks' income and capital. (C) 2003 Elsevier Science (USA). All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available