Loan loss provisioning by Italian banks: Managerial discretion, relationship banking, functional distance and bank risk

David Aristei and Manuela Gallo

International Review of Economics & Finance, 2019, vol. 60, issue C, 238-256

Abstract: This paper investigates the loan loss provisioning behaviour of Italian banks during the period 2006–2013. We examine the main discretionary and non-discretionary determinants of loan loss provisions (LLPs) and explicitly investigate the role of bank's functional distance, geographic diversification and risk.

Keywords: Loan loss provisions; Income smoothing; Bank regulation; Functional distance; Earnings volatility; Italian banks (search for similar items in EconPapers)
JEL-codes: C33 G21 G28 M41 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:60:y:2019:i:c:p:238-256

DOI: 10.1016/j.iref.2018.10.022

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