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Deposit Insurance System and the Commercial Bank Loan Loss Provisions
School of Management, Jinan University, Guangzhou, China
- 1 School of Management, Jinan University, Guangzhou, China
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Abstract
The article mainly analyzes the deposit insurance system in our country promulgated after the provision for the impact of bank loan loss provisions. Empirical study found that the deposit insurance system in our country was promulgated in 2015, the bank’s loan loss provisions increase d , among them, the big bank loan loss provisions significantly increased. After separati ng the manipulated loan loss provisions, we found that the manipulated loan loss provisions increased. Further study found that, following the promulgation of the deposit insurance system, managers in commercial bank weakened the motive of income smoothing, but the bank’s capital management behavior does not.
KeywordsLoan Loss ProvisionsDeposit Insurance SystemIncome Smoothing
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