Western European Stakeholder Banks’ Loan Loss Accounting

Meriläinen, Jari‐Mikko

doi:10.1007/s10693-017-0283-4

Cited by 15 publications

(20 citation statements)

References 38 publications

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“…In contrast, we find that standard monetary policy is still effective at influencing the composition of stakeholder banks' portfolios, as captured by the negative and highly significant coefficient on the interaction term between overnight rate and stakeholder . In showing that stakeholder banks' risk appetite varies less with interest rates than does that of shareholder banks, this evidence is consistent with the literature that points to a less cyclical behavior by stakeholder banks (e.g., Meriläinen, 2016, 2019).…”

Section: Resultssupporting

confidence: 87%

“…In addition, empirical support is found for significant differences between the two ownership types in terms of loan quality, with stakeholder banks having lower nonperforming loans (Beck et al., 2009) and loan loss provisions (Iannotta et al., 2007) than shareholder banks do. A recent study by Meriläinen (2019) also shows that cooperative banks' loan loss provisions have a smaller cyclical component relative to other ownership types, as demonstrated by the limited effect of gross domestic product (GDP) growth on their provisioning.…”

Section: Literature Reviewmentioning

confidence: 99%

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Monetary policy, ownership structure, and risk‐taking at financial intermediaries

Caselli

Figueira

2022

The Financial Review

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This paper examines how ownership structure interacts with monetary policy in shaping financial intermediaries' appetite for risk. By constructing a large panel of banks across Western Europe, we provide evidence that differences in bank ownership influence the transmission of monetary policy via the risk-taking channel. While shareholder banks actively adjust the riskiness of their portfolios to changes in interest rates, stakeholder banks appear to be less responsive to such changes. These findings call for greater attention to the nature of bank ownership when setting monetary policy.

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Section: Resultssupporting

confidence: 87%

Section: Literature Reviewmentioning

confidence: 99%

Monetary policy, ownership structure, and risk‐taking at financial intermediaries

Caselli

Figueira

2022

The Financial Review

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“…Os principais resultados de estudos anteriores indicam que os gestores de instituições financeiras cooperativas (que incluem as cooperativas de crédito e os bancos cooperativos) se envolveriam no gerenciamento de resultados por fatores intrínsecos à organização, como para evitar divulgar perdas (Bressan, Bressan & Silva Júnior, 2015;Santos & Guerra, 2018), a variação da carteira de crédito ou empréstimos vencidos (Bressan, Bressan & Silva Júnior, 2016;Kar, 2017;Naaman, 2018) ou afetados por benchmarks externos, como o desempenho do setor, Produto Interno Bruto (PIB) ou prociclicidade dos negócios (Skala, 2015;Henselmann, Ditter & Lupp, 2016;Olszak, Pipień & Kowalska, 2017;Hessou & Lai, 2018;Olszak, Roszkowska & Kowalska, 2018;Dantas, Borges & Fernandes, 2018;Meriläinen, 2019) e a relação com outros atributos, como a persistência das sobras (Diniz & Girão, 2019), o conservadorismo (Santos & Santos, 2020) ou porte da cooperativa de crédito (Diniz, 2020).…”

Section: Os Conflitos De Agência E O Gerenciamento De Resultados (Gr)unclassified

Influência da Folga Financeira no Gerenciamento de Resultados nas Cooperativas de Crédito Brasileiras

Santos

2020

REPeC

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Objetivo: Identificar a influência da folga financeira no gerenciamento dos resultados (GR) nas cooperativas de crédito singulares brasileiras, como uma estratégia de financiamento pré-perdas. Método: A amostra compreende 626 cooperativas de crédito singulares brasileiras no período entre 2000 e 2019 (20 anos). O modelo-base segue o proposto por Maia et al. (2013), com accruals específicos, controladas por variáveis relacionadas ao perfil das operações de crédito e características como tamanho, captação de depósitos à vista, proporção de operações vencidas e spread, categorizados pelo Plano COSIF. Resultados: Os resultados destacaram uma influência negativa da folga financeira no GR nas cooperativas de crédito brasileiras. Com isso, quanto maior (ou menor) a folga financeira à disposição dos gestores, menor (ou maior) a propensão ao GR. Logo, a folga amorteceria a interação entre incerteza e aversão ao risco, como um buffer financeiro, deixando-a em uma posição melhor do que uma empresa presa em um único curso de ação. Contribuições: Os resultados implicam que a “posse” da folga financeira colabora no reporte dos resultados, mitigando a percepção de risco dos cooperados e do agente regulador, intensificadas devido às características específicas e pressões econômicas, políticas e sociais exercidas pelos stakeholders.

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“…Of recent research analyzing LLPs (Bertay et al, 2015;Soedarmono et al, 2017;Olszak et al, 2017Olszak et al, , 2018Meril€ ainen, 2019;Kim et al, 2019;Danisman et al, 2021;Skała, 2020), only Bertay et al (2015) and Olszak et al (2017Olszak et al ( , 2018 focus directly on procyclicality of LLPs. Bertay et al (2015) in a cross-country study covering 111 countries for the period 1999-2010 apply two proxies related to credit risk, i.e.…”

Section: Relevant Literaturementioning

confidence: 99%

“…We, therefore, do not make definite expectations as to this association in our sample. Furthermore, we consider capital management as another determinant of LLP's magnitude, by including the share of capital in TA (CAPR) (Fonseca and Gonz alez, 2008;Olszak et al, 2017Olszak et al, , 2018Meril€ ainen, 2019;Simper et al, 2019;Skała, 2020Skała, , 2021Danisman et al, 2021;Jutasompakorn et al, 2021;Di Fabio et al, 2021;Hou et al, 2021;Tran and Houston, 2021). Recent research shows that the effect of capital on LLPs is heterogenous and depends on bank-specific factors (e.g.…”

Section: Procyclicalitymentioning

confidence: 99%

Procyclicality of loan-loss provisions and competitive environment – a global perspective

Olszak

Kowalska

2022

IJOEM

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PurposeDespite the extensive debate on the impact of bank competition on risk-taking, there is no evidence of its role in procyclicality of loan-loss provisions (LLPs). The purpose of this study is to find out what is the role of competition in the procyclicality of LLPs.Design/methodology/approachUsing over 70,000 bank-level observations in 103 countries in 2004–2015 and the LLPs model, this study interacts competition with business cycle to check what is the effect of competition on procyclicality of LLPs.FindingsThis study finds that intense competition is associated with more procyclicality of LLPs. Increased procyclicality of LLPs in a more competitive environment is binding for high-income countries. The opposite effect is shown for low-income countries.Research limitations/implicationsFuture research can be extended by testing the role of additional factors – such as regulations, supervision or institutional protection of shareholders' rights, in the association between procyclicality and competition.Practical implicationsThe main message of this paper is that the competitive environment changes the procyclicality of LLPs. The results are important from the point of view of the COVID-19 pandemic because government interventions during lockdowns will affect competition in the banking industry and in other industries of the economy.Originality/valueThis paper contributes to the extant research in three dimensions. First, it shows that competition is an important factor behind procyclicality of LLPs. Second, it adds to the research on the links between competition and financial stability. Third, it shows that the link between competition and procyclicality of LLPs depends on the economic development of the country in which the banks are located.

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Western European Stakeholder Banks’ Loan Loss Accounting

Cited by 15 publications

References 38 publications

Monetary policy, ownership structure, and risk‐taking at financial intermediaries

Monetary policy, ownership structure, and risk‐taking at financial intermediaries

Influência da Folga Financeira no Gerenciamento de Resultados nas Cooperativas de Crédito Brasileiras

Procyclicality of loan-loss provisions and competitive environment – a global perspective

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