PL EN


2018 | 52 | 1 |
Article title

Strategie wzrostu kredytów a wygładzanie dochodów w bankach Europy Centralnej

Authors
Content
Title variants
Languages of publication
EN
Abstracts
EN
In this paper, we analyse the process of income smoothing in Central European banks in the context of expansion strategies of banks. Using a sample of 216 banks in the period 2003–2014, we demonstrate that income smoothing is a strategy most pursued by low-growth financial institutions. This result is particularly visible when the relative expansion rate at local markets is taken into account. High-growth banks are likely to have less foreseeable income streams, loan volumes and loan quality. As income smoothing is a long-term process, the lack of predictability could make forward-making reserve policies more challenging.
PL
W pracy analizowany jest proces wygładzania dochodów w bankach Europy Centralnej w kontekście strategii ekspansji banków. Wykorzystując dane 216 banków z okresu 2003–2014, wykazano, że wygładzanie dochodów jest strategią wykorzystywaną przede wszystkim przez instytucje finansowe o niskim tempie wzrostu. Wyniki te są szczególnie widoczne, gdy brane jest pod uwagę relatywne tempo wzrostu kredytów banku na rynku krajowym. Banki o wysokim tempie wzrostu, z których część zaangażowana jest w procesy fuzji i przejęć, prawdopodobnie posiadają mniej przewidywalne strumienie dochodów, wolumeny kredytów i jakość kredytów. Ze względu na długoterminowy charakter wygładzania dochodów, brak przewidywalności może utrudniać politykę tworzenia rezerw uwzględniającą przyszłe wydarzenia.
Year
Volume
52
Issue
1
Physical description
Dates
published
2018
online
2018-06-20
Contributors
author
References
  • Bikker J.A., Metzemakers P.A.J., Bank provisioning behaviour and procyclicality, “Journal of International Financial Markets, Institutions and Money” 2005, Vol. 15(2), DOI: https://doi.org/10.1016/j.intfin.2004.03.004.
  • Bouvatier V., Lepetit L., Strobel F., Bank income smoothing, ownership concentration and the regulatory environment, “Journal of Banking & Finance” 2014, Vol. 41, DOI: https://doi.org/10.1016/j.jbankfin.2013.12.001.
  • Bushman R.M., Williams C.D., Accounting discretion, loan-loss provisioning and discipline of banks’ risk-taking, “Journal of Accounting & Economics” 2012, Vol. 54(1), DOI: https://doi.org/10.1016/j.jacceco.2012.04.002.
  • Cavallo M., Majnoni G., Do banks provision for bad loans in good times? Empirical evidence and policy implications, [in:] R.M. Levich, G. Majnoni, C. Reinhart (eds.), Ratings, Rating Agencies and the Global Financial System, Kluwer Academic Publishers, Boston 2002, DOI: https://doi.org/10.1007/978-1-4615-0999-8_19.
  • Fillat J.L., Montoriol-Garriga J., Addressing the pro-cyclicality of capital requirements with a dynamic loan loss provision system, Federal Reserve Bank of Boston Working Paper, 2010, QAU 10-4.
  • Fonseca A.R., González F., Cross-country determinants of bank income smoothing by managing loan-loss provisions, “Journal of Banking & Finance” 2008, Vol. 32(2), DOI: https://doi.org/10.1016/j.jbankfin.2007.02.012.
  • Healy P.M., Wahlen J.M., A review of the earnings management literature and its implications for standard setting, “Accounting Horizons” 1999, Vol. 13(4), DOI: https://doi.org/10.2308/acch.1999.13.4.365.
  • Goel A.M., Thakor A.V., Why do firms smooth earnings?, “Journal of Business” 2003, Vol. 76(1), DOI: https://doi.org/10.1086/344117.
  • Laeven L., Majnoni G., Loan-loss provisioning and economic slowdowns: too much, too late?, “Journal of Financial Intermediation” 2003, Vol. 12(2), DOI: https://doi.org/10.1016/S1042-9573(03)00016-0.
  • Olszak M., Pipień M., Cross-country linkages as determinants of procyclicality of loan loss provisions, “European Journal of Finance” 2014, Vol. 22(11).
  • Pérez D., Salas-Fumás V., Saurina J., Earnings and capital management in alternative loan-loss provision regulatory regimes, “European Accounting Review” 2008, Vol. 17(3), DOI: https://doi.org/10.1080/09638180802016742.
  • Quagliariello M., Banks’ riskiness over the business cycle: A panel analysis on Italian intermediaries, “Applied Financial Economics” 2007, Vol. 17(2), DOI: https://doi.org/10.1080/09603100500486501.
  • Skała D., Saving on a rainy day? Income smoothing and procyclicality of loan-loss provisions in Central European banks, “International Finance” 2015, Vol. 18(1), DOI: https://doi.org/10.1111/1468-2362.12058.
Document Type
Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.ojs-doi-10_17951_h_2018_52_1_161
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.