Canal des provisions bancaires et cyclicité du marché du crédit

Vincent Bouvatier and Laetitia Lepetit

Revue économique, 2011, vol. 62, issue 1, 67-85

Abstract: The literature on bank provisioning behaviour shows that changes in loan loss provisions are counter-cyclical. Based on this stylised fact, this paper develops a partial equilibrium model of a banking firm that analyzes how provisioning rules influence credit market fluctuations. The model and the simulations show that a backward-looking provisioning system amplifies credit market fluctuations. The implementation of a forward-looking provisioning system could remove this bank provision channel. Classification JEL : G21

JEL-codes: G21 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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