Chen, Li; Emanuel, David M.; Li, Lina; Yang, Mu - 2022
PurposeThe authors examine whether Chinese banks use loan loss provisions (LLPs) for capital management, income … management practice before the Chinese Basel III, the implementation of the new regulations induced listed banks to manage tier-1 … capital via LLPs. The authors also find strong support that Chinese banks engage in income smoothing via LLPs management, and …