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Article Dans Une Revue Journal of Financial Stability Année : 2012

Provisioning rules and bank lending : A theoretical model

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1
Vincent Bouvatier
  • Fonction : Auteur

Résumé

This paper develops a partial equilibrium model of a banking firm to analyze how provisioning rules influence loan market fluctuations. We show that a backward-looking provisioning system amplifies the pro-cyclicality of loan market fluctuations. We demonstrate that, in a forward-looking provisioning system where statistical provisions are used to smooth the evolution of total loan loss provisions, the issue of pro-cyclicality of loan market fluctuations does not exist. Our findings support the call for the implementation of a dynamic provisioning system.

Dates et versions

hal-00785520 , version 1 (06-02-2013)

Identifiants

Citer

Vincent Bouvatier, Laetitia Lepetit. Provisioning rules and bank lending : A theoretical model. Journal of Financial Stability, 2012, 8 (2), pp.25-31. ⟨10.2139/ssrn.1148314⟩. ⟨hal-00785520⟩

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