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An analysis of loan loss provisioning behaviour in Vietnamese banking

Bryce, Cormac; Dadoukis, Aristeidis; Hall, Maximilian; Nguyen, Linh; Simper, Richard


Cormac Bryce

Aristeidis Dadoukis

Maximilian Hall

Linh Nguyen

Richard Simper


This paper investigates loan loss provisioning (LLP) behaviour by Vietnamese banks during the period 2006–2012. We test the capital, income-smoothing and cyclical management hypotheses and examine whether the inclusion of X-efficiencies and/or risk control variables influences provisioning behaviour. When the X-efficiency estimates are incorporated into the models, Vietnamese banks do not exhibit counter-cyclical or capital management manipulation by managers, but counter cyclical income smoothing. Yet, the inclusion of risk control variables in X-efficiency scores (either equity or reserves for impaired loans) supports the addition of capital management hypotheses.

Journal Article Type Article
Publication Date Aug 25, 2015
Print ISSN 1544-6123
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 14
Pages 69-75
Publisher URL


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