Credit policy in small Polish banks - is there room for income smoothing?

• Autorzy: Dorota Skała
• Języki publikacji: EN

Abstrakty

EN

We study credit policy in a unique sample of c.360 Polish cooperative banks between 2007-2012. We find evidence for income smoothing through loan loss provisions, indicating that cooperative banks take advantage of higher earnings to make reserves for periods when their profitability might decrease. Similarly to commercial banks, provisions of cooperative banks are procyclical towards the macroeconomic cycle. When regional economic conditions deteriorate, cooperative banks increase their provisioning and this is especially visible when the economic slumps are severe. These results indicate that the different shareholder structure of cooperative banks does not affect managerial incentives for income smoothing. Thus, problems of cyclicality in the cooperative sector should be addressed by local policymakers in the same extent as that of cyclicality in the commercial banking sector.(original abstract)

Słowa kluczowe

EN

Bank capital; Financial capital; Cooperative banks

PL

Kapitał bankowy; Kapitał finansowy; Banki spółdzielcze

• Czasopismo: Roczniki Kolegium Analiz Ekonomicznych / Szkoła Główna Handlowa
• Rocznik: 2014
• Numer: nr 34 Modelowanie danych panelowych : teoria i praktyka : III Ogólnopolska Konferencja
• Strony: 183--196

Twórcy

autor

Dorota Skała

• University of Szczecin

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