The Use of Loan Loss Provisions By Nordic Commercial Banks
Koskimies, Kristian (2017)
Koskimies, Kristian
2017
Kuvaus
Opinnäytetyö kokotekstinä PDF-muodossa.
Tiivistelmä
The purpose of this thesis is to study how Nordic banks have used loan loss provisions during the years 2008-2013 for earnings management, capital management and signaling. The effects of the financial crisis of 2008 are still affecting the markets and many European countries and banks face financial difficulties for reasons that can be traced back to the financial crisis. Greece’s government’s manipulation of their financial information in the early 2000s has been in the media extensively during the last months and it will be intriguing to see if and how Nordic banks have used their loan loss provisions to manipulate their financial information during the time period of this thesis.
The results for the Nordic banks are compared to the results from other banks which come from 13 other European countries. The purpose of comparing these two sets of results is to see if Nordic banks use their loan loss provisions differently compared to their European counterparts.
The results of this thesis shows that Nordic banks seem to use their loan loss provisions for earnings management and capital management but not for signaling. These results are mostly in line with other research conducted on the subject earlier, but with banks from different countries.
The results for the Nordic banks are compared to the results from other banks which come from 13 other European countries. The purpose of comparing these two sets of results is to see if Nordic banks use their loan loss provisions differently compared to their European counterparts.
The results of this thesis shows that Nordic banks seem to use their loan loss provisions for earnings management and capital management but not for signaling. These results are mostly in line with other research conducted on the subject earlier, but with banks from different countries.