Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/211966
Year of Publication: 
2003
Series/Report no.: 
Bank of Finland Discussion Papers No. 33/2003
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper analyses the determinants of banks loan loss allowances for samples of US banks and three non-US samples: a group of 21 countries, Canada and Japan.The model includes fundamental (or non-discretionary) determinants of the allowance such as non-performing loans, and discretionary determinants such as income before the loan loss provision.The results suggest that the loan loss allowance is sensitive to pre-provision income in almost all samples.However, the results also suggest that some variables thought to reflect fundamental factors in US analysis, such as net chargeoffs, are not significant factors for non-US banks.
Subjects: 
loan loss allowance
accounting standards
international banking
nonperforming loan
discretionary accruals
JEL: 
G21
G28
E58
F23
G33
Persistent Identifier of the first edition: 
ISBN: 
952-462-106-1
Document Type: 
Working Paper

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