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Abstract

This paper ̄finds that banking ̄firms' unexpected loan loss provisions had a significant effect of increasing bank opacity, both before and during the 2007–2009 ̄financial crisis. Furthermore, during the financial crisis, the extent to which banks delayed loan loss recognition is found to have had a significant effect on bank opacity, confirming an important concern raised by the Financial Crisis Advisory Group. Overall, banks' practices in managing Reserves seem to have a material impact on their opacity.
Lingua originaleInglese
pagine (da-a)1-26
Numero di pagine26
RivistaJournal of Financial Management, Markets and Institutions
Volume2022
Numero di pubblicazione10 (1)
DOI
Stato di pubblicazionePubblicato - 2022

All Science Journal Classification (ASJC) codes

  • Economia, Econometria e Finanza Generali

Keywords

  • Bank opacity
  • delays in loss recognition
  • loan loss reserve

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