Loan Loss Provisioning Practices

作     者：Mohd Yaziz Mohd Isa Yap Voon Choong David Yong Gun Fie 

作者机构：University Tun Abdul Razak Kuala Lumpur Malaysia Multimedia University Selangor Malaysia 

出 版 物：《Journal of Modern Accounting and Auditing》 (现代会计与审计（英文版）)

年 卷 期：2013年第9卷第6期

页      面：814-822页

学科分类：12[管理学] 02[经济学] 0202[经济学-应用经济学] 081405[工学-防灾减灾工程及防护工程] 1201[管理学-管理科学与工程(可授管理学、工学学位)] 020204[经济学-金融学（含∶保险学）] 08[工学] 0814[工学-土木工程] 

主　　题：loan loss provisioning practices commercial banks non-performing loans (NPL) estimated bad debt recoveries defaulted loans 

摘      要：The purpose of this paper is to come up with factors in loan loss provisioning practices on commercial banks that reflect on collectability of defaulted loans. The need for this research is due to failures in the loan loss provisioning practices which resulted in loan loss provisions （LLP） not reflecting on collectability of the defaulted loans. As a consequence, the banks do not capture their loss expectations and do not continuously reassess their loss expectations as the conditions affecting their borrowers may change. Henceforth, in their financial reporting, the banks do not represent relevantly and faithfully their true underlying credit risks conditions. When the banks do not represent relevantly and faithfully their true underlying risk conditions, they contradict the objectives of useful financial reporting. The results showed that among explanatory variables, bad debt recoveries as a factor in loan loss provisioning practices that reflect on collectability of defaulted loans was rejected. Bad debt recoveries was a biased variable and inconsistent estimator. In context of perceived credit risks as the basis to make credit judgments, an estimate of bad debt recoveries had not fulfilled the criteria. On the other hand, non-performing loans （NPL） as a factor in loan loss provisioning practices was not rejected.