European bank loan loss provisioning and technological innovative progress

被引：14

作者：

Simper, Richard ^{[1
]}

Dadoukis, Aristeidis ^{[1
]}

Bryce, Cormac ^{[2
]}

机构：

[1] Univ Nottingham, Nottingham Univ Business Sch, Ctr Banking Risk & Financial Serv, Nottingham NG8 1BB, England

[2] City Univ London, Fac Actuarial Sci & Insurance, Cass Business Sch, London EC1Y 8TZ, England

来源：

INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS | 2019年 / 63卷

关键词：

Loan loss provision accounting; Bad management; Technological innovative progress; Earnings management; Risk management; CAPITAL MANAGEMENT; EARNINGS MANAGEMENT; PANEL-DATA; EFFICIENCY; SCALE; ECONOMIES; BUSINESS; DETERMINANTS; PERFORMANCE; OWNERSHIP;

D O I：

10.1016/j.irfa.2019.03.001

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper presents an analysis of Loan Loss Provisioning (LLP) behavior of European banks across 26-member states to determine how bad management and Technological Innovative Progress (TIP) has affected bank risk management. Technological improvements in banking have seen advances in both back and front office operations with respect to lending. This is created through increased disembodied technological change capturing improvements in both non-financial and risk management technologies. We find, using a new dynamic LLP model that European banks employed bad management practices in relation to their lending and monitoring practices, leading to higher losses on loans (through increased LLPs). However, the relationship between TIP and LLPs indicates that those banks which increased their technological efficiency with respect to costs had a greater ability to recognize bad loans, and were therefore able to subsequently increase LLPs. That is, improving technology mitigated the impact of bad management practices in European banks.

引用

页码：119 / 130

页数：12

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