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Monday, July 20, 2020 | History

2 edition of Cyclical patterns in profits, provisioning and lending of banks found in the catalog.

Cyclical patterns in profits, provisioning and lending of banks

J. A. Bikker

Cyclical patterns in profits, provisioning and lending of banks

by J. A. Bikker

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  • 6 Currently reading

Published by De Nederlandsche Bank in Amsterdam .
Written in English


Edition Notes

Includes bibliographical references.

StatementJ.A. Bikker, H. Hu.
SeriesDNB staff reports -- no.86
ContributionsHu, Haixia., Nederlandsche Bank (Amsterdam, Netherlands)
The Physical Object
Pagination29p. :
Number of Pages29
ID Numbers
Open LibraryOL20866976M

Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements. Banca Nazionale del Lavaro Quarterly Review, 55, Bikker, J. A., & Metzemakers, P. A. (). discretion (income smoothing and profit signaling). However, the results also suggest that banks game on dynamic provisions by taking an ex-ante riskier behavior once the dynamic provisioning scheme is adopted. JEL Classification: G21, G28 JEL Classification: Key words: loan-loss provisions, bank lending, risk, finanKey words: cial crisis.

2. THE CYCLICAL PATTERN OF BANK LENDING IN SPAIN As Chart 1A clearly shows, the growth of bank lending is characterised by alternate periods of expansion and stagnation. Despite the profound structural changes undergone by the Spanish economy over a period as long as that considered1, bank lending has maintained its cyclical pattern. PROBLEM STATEMENT 1. INTRODUCTION Research Journal of Finance and Accounting In banking sector the entire conventional and Islamic banks started .

Cyclical patterns in credit and economic conditions The bulk (%) of Malaysian banks’ gross income is contributed by interest income from lending activities, reflecting the dominant role played by banks in financing the economy (Chart 3). Opinion - The Pro cyclical nature of the current international loan loss provisioning regime most banking crises have had as a direct cause the inadequate management of credit risk by institutions.


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Cyclical patterns in profits, provisioning and lending of banks by J. A. Bikker Download PDF EPUB FB2

"Cyclical Patterns in Profits, Provisioning and Lending of Banks," DNB Staff Reports (discontinued) 86, Netherlands Central Bank. Handle: RePEc:dnb:staffs as. Cyclical Patterns in Profits, Provisioning and Lending of Banks. Cy cl ical Patterns in Profit s, Provisioning and Lending of Banks.

J.A. Bikker. DNB Staff ReportsNo. cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new basel capital requirements jacob a. bikker and haixia hu1 december Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements The proposed risk sensitive minimum requirements of the new Basel capital accord have raised concerns about possible (acceleration of) procyclical behaviour of banking, which might threaten macroeconomic by: Cyclical patterns in profits, provisioning and lending of banks and procyclicality requirements is expected to be limited compared to the capital surplus most banks hold up.

Based on the second consultative BIS document of JanuaryErvin and Wild. Jacob A. Bikker & Haixia Hu, "Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements," BNL Quarterly Review, Banca Nazionale del Lavoro, vol.

55(), pages Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements. Jacob Bikker and Haixia Hu () Additional contact information Haixia Hu: De Nederlandsche Bank, Export and Import Credits Guarantee Department, Amsterdam (The Netherlands).

Cyclical Patterns in Profits, Provisioning and Lending of Banks and Procyclicality of the New Basle Capital Requirements. BNL Quarterly Review,pp. has been cited by the following article. The first provisioning system is a strict backward-looking provisioning system in which the bank strictly implements the backward-looking provisioning rules.

The analysis of the bank’s lending behavior in such a system will allow us to highlight the role of loan loss provisions in the pro-cyclical variation in loan market conditions.

Bikker, J. A., & Hu, H. Cyclical patterns in profits, provisions and lending of banks and procyclicality of the new Basel capital requirements. Banca Nazionale del Lavoro Quarterly Review, 55, – Google Scholar. Information about the open-access article 'Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements' in DOAJ.

DOAJ is an online directory that indexes and provides access to quality open access, peer-reviewed by: quickly to exogenous shocks. Further, Bikker and Hu ()‟s research on cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements establish that enlargement of credit loss provision depend strongly on business cycle as.

Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements which reduces procyclicality. Lending fluctuates with the business cycle too, but appears to be driven by demand rather than by supply factors such as (shortage of)capital, which contradicts the assumptions underlying.

The book concludes with an investigation into cyclical patterns of profits, provisions and lending in order to assess the procyclicality of bank behaviour in light of the new Basel Capital Accord. Academics and policymakers interested in banking supervision, financial stability and monetary policy will welcome this thorough analysis of.

See Bikker, J.A. and Hu, H., “Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements ”, BNL Quarterly Review, pp. See Carbo Valverde, S. andRodriguez Fernandez, F., “The determinants of bank margins in European banking”.

Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements * ACOB, B. A., IKKER, Ai-xia   that banks engaging in counter-cyclical provisioning will shrink lending more than other banks as opacity heightens adverse selection concerns during a crisis (e.g., Lang and Maffett, ; Ng, ; Bushman and Williams, ), and this in turn reduces banks’ ability to raise equity.

3 Contents Abstract 5 Summary 7 1. Introduction 9 2. Some stylised facts about UK banks’ provisions 10 Description of the dataset 10 Patterns in the data 10 UK mortgage and commercial banks 10 Provisioning and the economic cycle 12 General and specific provisions 13 Provisions, write-offs and recoveries 14 3.

Berger, A. & Udell, G. The institutional memory hypothesis and the procyclicality of bank lending behavior. Journal of Financial Bikker, J. & Hu, H. Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements. PSL Quarterly Review, 55( As a result, book profits follow the opposite pattern.

In the same way, collateral can also play a role in fuelling credit cycles. This is because lending booms tend to be intertwined with asset booms; increased lending increases the value of assets, which in turn provide the collateral for further borrowing. Do bank regulation, supervision and monitoring enhance or impede bank efficiency?

Journal of Banking and Finance, 37(8) -- Bikker, J. A. and Hu, H. (). Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements.

Banca Nazionale del Lavoro Quarterly Review, 55()  This paper analyzes the interaction between loan loss provisioning and bank capital. Fig. 1 shows that financial institutions hold loan loss provisions for expected credit losses and capital for unexpected losses, i.e., the difference between the % Value at Risk and the expected losses.

Download: Download high-res image (82KB) Download: Download full-size image. Bikker J.A., Hu H. (), Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the new Basel capital requirements, BNL Quarterly Review, Google Scholar Calmès C., Liu Y. (), Financial Structure Change and Banking Income: A Canada- U.S.

Comparison, Journal of International Financial Markets.