Deposit Insurance System and the Commercial Bank Loan Loss Provisions - Modern Economy

ME > Vol.10 No.1, January 2019

Deposit Insurance System and the Commercial Bank Loan Loss Provisions ()

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DOI: 10.4236/me.2019.101012 842 Downloads 1,628 Views

Author(s)

Zhiyi Wang

Affiliation(s)

School of Management, Jinan University, Guangzhou, China.

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 increased, among them, the big bank loan loss provisions significantly increased. After separating 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.

KEYWORDS

Loan Loss Provisions, Deposit Insurance System, Income Smoothing

Share and Cite:

Wang, Z. (2019) Deposit Insurance System and the Commercial Bank Loan Loss Provisions. Modern Economy, 10, 175-187. doi: 10.4236/me.2019.101012.

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