Factors Affecting the Loan Loss Provision in Vietnamese System of Commercial Banks
NGUYỄN THỊ THU HIỀN
PHẠM ĐÌNH TUẤN
Abstract
Establishing loan loss provisions may affect bank’s profitability and capital adequacy ratio. The paper employs regression analysis to explore operations of loan loss provisions in Vietnamese commercial banks in 2008-2012 in its relationship with bank characteristics. The results show that loan loss provisions of Vietnamese commercial banks are positively related to size and proportion of bad debt and negatively related to financial risk ratio. The paper provides theoretical evidence of the opportunism in selection of accounting policy concerning loan risk management by Vietnamese bank managers.http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=41b4614a-975a-47e6-bd28-6f2ddd5a8faa