Bank provisioning practice during the pandemic: evidence from the COVID-19 outbreak

Abstract

We investigate whether, and to what extent, banks exploit their discretion over loan loss provisions to achieve their management purposes during the pandemic. Using a sample of US banks during the current COVID-19 outbreak, we find that banks are more eager to use discretionary loan loss provisions in response to the worsening pandemic situation. We find in particular that banks use discretionary loan loss provisions to manage regulatory capital, smooth income and signal private information to outsiders. Overall, this paper enriches the literature on bank discretionary behaviour during the difficult time, especially during the current COVID-19 pandemic, and therefore, it has important implications for banking supervisor and bank stakeholders.

Effects of Virtual Health Messages on Maternal Therapeutic Adherence for Childhood Anemia

“…To address these gaps, it would be crucial to adapt the VHM to the cultural and linguistic particularities of each community, thus ensuring that the messages are understandable and relevant. Nguyen and Tadi (30) suggest on this topic that, in long-term therapies where the caregiver is required to administer iron on an outpatient basis, exhaustive follow-up and monitoring of the case ensures optimal adherence to treatment.…”