The Economic Performance of African-American-Owned Banks: The Role of Loan Loss Provisions

1999 ◽  
Vol 89 (2) ◽  
pp. 372-376 ◽  
Author(s):  
Christopher C Henderson
Keyword(s):  
African American ◽  
Economic Performance ◽  
Loan Loss ◽  
Loan Loss Provisions

scholarly journals Audit Committee and Discretionary Loan Loss Provisions in Tunisian Commercial Banks

2018 ◽  
Vol 13 (3) ◽  
pp. 169
Author(s):  
Amina Zgarni ◽  
Hassouna Fadhila ◽  
Moez El Gaied
Keyword(s):  
Earnings Management ◽  
Commercial Banks ◽  
Regression Models ◽  
Audit Committee ◽  
Standard Errors ◽  
Loan Loss ◽  
Positive Effects ◽  
Loan Loss Provisions ◽  
Effective Role

The purpose of this paper is to study the effect of the audit committee (presence, expertise, independence, size and activity) on earnings management of banks. We selected a sample of ten Tunisian commercial banks examined over the 2001 to 2014 period. The regression models are estimated using the “Panel Corrected Standard Errors” method of Beck and Katz (1995). Our empirical results highlight the effective role of the audit committee's expertise in mitigating discretionary practices. However, the number of meetings, which is less than the standard required by regulatory authorities, does not have a significant disciplinary effect on discretionary loan loss provisions. Results also report that Audit committee’s independence and size have positive effects on discretionary loan loss provisions in our sample.

scholarly journals The factors affecting the bank’s credit impairment losses by adopting IAS on PSAK 55 in Indonesia

2020 ◽  
Vol 22 (3) ◽  
Author(s):  
Sparta Sparta ◽  
Nadya Trinova
Keyword(s):  
Stock Exchange ◽  
Positive Influence ◽  
Vital Role ◽  
Income Smoothing ◽  
Loan Loss ◽  
Factors Affecting ◽  
Loan Loss Provisions ◽  
Ias 39 ◽  
The Stability

Loan loss provisions in banks plays a vital role in maintaining the stability and health of banks, as well as fulfilling the function of banks in channeling public funds. This study aims to determine the effect of income smoothing and the behavior of procyclicality against reserves of credit losses losses, as well as the role of adoption of IAS 39 in PSAK 55 in moderating the influence of these two variables. The object of this study are conventional commercial banks that are listed on the Indonesia Stock Exchange within the research period of 2008-2017. By using purposive sampling method, I obtained 20 bank samples and 196 observations. The hypotheses in this research are tested using multiple regression analysis. This study shows that income smoothing has a positive influence on loan loss provisions, whereas procyclicality and IAS 39 adoption in PSAK 55 do not affect loan loss provisions significantly. Meanwhile, IAS 39 adoption in PSAK 55 weakens the positive influence of income smoothing, however it cannot moderate the influence of procyclicality on loan loss provisions.  

The Effect of the Paycheck Protection Program and Financial Reporting Standards on Bank Risk-Taking

2021 ◽  
Author(s):  
Hailey B. Ballew ◽  
Allison Nicoletti ◽  
Sarah B. Stuber
Keyword(s):  
Financial Reporting ◽  
Risk Taking ◽  
Bank Risk ◽  
Reporting Standards ◽  
Loan Loss ◽  
Financial Reporting Standards ◽  
Loan Loss Provisions ◽  
Changes In Risk ◽  
Insight Into

This paper examines the consequences of the paycheck protection program (PPP) for bank risk-taking and whether the shift to the current expected credit loss (CECL) model moderates this effect. We find that the extent of a bank’s PPP participation is associated with relatively greater changes in risk-taking outside of the PPP. We also show that this effect is concentrated in banks that have not early adopted the CECL model and banks with timelier pre-PPP loan loss provisions, suggesting that timelier loan loss recognition constrains risk-taking incentives. Overall, our findings provide insight into the indirect consequences of government stimulus programs administered through banks and the role of accounting in constraining bank risk-taking. This paper was accepted by Suraj Srinivasan, accounting.

scholarly journals The role of ownership map in constraining discretionary loan loss-provisions decisions in Jordanian banks

2020 ◽  
Vol 7 (1) ◽  
pp. 1752604 ◽  
Author(s):  
Alaa Mohammad AlQudah ◽  
Mohammad Jamal Azzam ◽  
Ayman Ahmad Abu Haija ◽  
Safaa Adnan AlSmadi
Keyword(s):  
Loan Loss ◽  
Loan Loss Provisions

scholarly journals The Role of economic variables and credit portfolio attributes for estimating discretionary loan loss provisions in Brazilian banks

2013 ◽  
Vol 10 (4) ◽  
pp. 65-90 ◽  
Author(s):  
José Alves Dantas ◽  
Otavio Ribeiro de Medeiros ◽  
Paulo Roberto Barbosa Lustosa
Keyword(s):  
Loan Loss ◽  
Economic Variables ◽  
Loan Loss Provisions ◽  
Credit Portfolio

scholarly journals The role of banking supervision in credit risk disclosures and loan loss provisions

2020 ◽  
Vol 22 (4) ◽  
pp. 932-948
Author(s):  
Daniela Albuquerque ◽  
Ana Isabel Morais ◽  
Inês Pinto
Keyword(s):  
Credit Risk ◽  
Banking Supervision ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
Risk Disclosures

Does the business model influence income smoothing? Evidence from European banks

2019 ◽  
Vol 20 (3) ◽  
pp. 311-330
Author(s):  
Costanza Di Fabio
Keyword(s):  
Business Model ◽  
Balance Sheet ◽  
Income Smoothing ◽  
Loan Loss ◽  
Content Type ◽  
Loan Loss Provisions ◽  
Country Level ◽  
European Banks ◽  
External Governance

Purpose The purpose of this paper is to explore whether the business model (BM) influences bank income smoothing by considering two competing perspectives, the opportunistic and the information enhancement one. Additionally, the paper addresses the role of auditors’ involvement in national supervision and external governance. Design/methodology/approach Income smoothing is measured by regressing loan loss provisions on unmanaged earnings, and the moderating role of country-level factors is tested employing three-way interactions. The sample consists of European banks observed from 2004 to 2015. Findings Results indicate that the BM affects smoothing and that retail-funded banks exhibit smoother earnings due to informative reasons. National supervisors’ emphasis on audit is positively associated with smoothing by market-oriented banks, whereas external governance constrains smoothing in diversified-retail banks. Research limitations/implications European reforms strengthening monitoring bodies could bring the unintended effect of inducing opportunistic behaviours in market-oriented BMs. However, this study employs indirect proxies for institutional factors and does not consider internal-governance issues. Practical implications Evidence sustains the IASB choice of the expected-loss approach for estimating credit losses as it could enhance the informativeness of retail-funded banks’ accounting numbers. Originality/value This paper contributes to the income smoothing literature by addressing the role of the BM as a whole in explaining smoothing propensity, not limiting the observation to partial features of the balance sheet. Moreover, it supports a counterintuitive argument, the penalty hypothesis, assuming that stronger supervision increases bank incentives to manage earnings to avoid penalties.

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