Accéder directement au contenu Accéder directement à la navigation
Article dans une revue

Banks' Procyclical Behavior: Does Provisioning Matter?

Abstract : A panel of 186 European banks is used for the period 1992-2004 to determine if banking behaviors, induced by the capital adequacy constraint and the provisioning system, amplify credit fluctuations. Our nding is consistent with the bank capital channel hypothesis, which means that poorly capitalized banks constrained to expand credit. We also find that loan loss provisions (LLP) made in order to cover identified credit losses (non discretionary LLP) amplify credit fluctuations. Indeed, non discretionary LLP evolve cyclically. This leads to misevaluation of expected credit risk which affect banks'incentives grant new loans since lending costs are misstated. By contrast, LLP used for management objectives discretionary LLP) do not affect credit fluctuations. The findings of our research are consistent with the call for the implementation of a dynamic provisioning system in Europe.
Type de document :
Article dans une revue
Liste complète des métadonnées

https://hal-unilim.archives-ouvertes.fr/hal-00916599
Contributeur : Thierno Barry <>
Soumis le : lundi 16 décembre 2013 - 15:40:32
Dernière modification le : vendredi 6 mars 2020 - 02:06:09
Archivage à long terme le : : mardi 18 mars 2014 - 12:25:33

Fichier

bouvatier_lepetit_2006.pdf
Fichiers produits par l'(les) auteur(s)

Identifiants

Citation

Vincent Bouvatier, Laetitia Lepetit. Banks' Procyclical Behavior: Does Provisioning Matter?. Journal of International Financial Markets, Institutions & Money, 2008, 18 (5), pp.513-526. ⟨10.1016/j.intfin.2007.07.004⟩. ⟨hal-00916599⟩

Partager

Métriques

Consultations de la notice

602

Téléchargements de fichiers

1210