ПАНЕЛНО ИЗСЛЕДВАНЕ НА ОБЕЗЦЕНКАТА НА КРЕДИТИ
PANEL STUDY OF LOAN LOSS PROVISIONS

Summary/Abstract: Using loan loss provision for “smoothing” the financial performance of commercial banks is not uncommon. It is believed that this is mainly driven by the desire to achieve bank regulatory requirements, to control the financial performance, to create hidden buffers and so on. The studies of the factors influencing loan loss provisions are based on specific econometric techniques. The use of panel data structures requires application of modern econometric methods that provide more precise results. The panel study of the factors influencing loan loss provisions confirms the conclusions of previous studies on the impact of write-offs and profit. At the same time a panel study proved that a significant change was observed in bank management policies with regard to the management of financial performance since the onset of the crisis in Bulgaria.

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