Provisioning rules and bank lending: A theoretical model - Université Paris Nanterre Accéder directement au contenu
Article Dans Une Revue Journal of Financial Stability Année : 2012

Provisioning rules and bank lending: A theoretical model

Vincent Bouvatier

Résumé

This paper develops a partial equilibrium model of a banking …rm to analyze how provisioning rules inuence loan market uctuations. We show that a backward-looking provisioning system ampli…es the pro-cyclicality of loan market uctuations. We demonstrate that, in a forward-looking provisioning system where statistical provisions are used to smooth the evolution of total loan loss provisions, the issue of pro-cyclicality of loan market uctuations does not exist. Our results support the recent call of the Basel Committee for the implementation of a forward-looking provisioning system to address procyclicality. JEL classi…cation: G21 anonymous referees for their helpful comments. The usual disclaimer applies.
Fichier principal
Vignette du fichier
Bouvatier-Lepetit-JFS.pdf (166.35 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-01098957 , version 1 (30-12-2014)

Identifiants

Citer

Vincent Bouvatier, Laetitia Lepetit. Provisioning rules and bank lending: A theoretical model. Journal of Financial Stability, 2012, 8, pp.25 - 31. ⟨10.1016/j.jfs.2011.04.001⟩. ⟨hal-01098957⟩
164 Consultations
1760 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More