Credit Risk and Bank Credit Behavior under the New Normal Economy

DOI

10.2991/iemss-17.2017.137How to use a DOI?

Keywords

Credit risk, Bank credit behavior, New normal economy.

Abstract

Macroeconomic volatility and bank credit influence each other, the relationship between them attracted a wide spread attention after the financial crisis in 2008. Thus this paper did the research on Credit risk and bank credit behavior of our country. We found that the credit risk has a pro-cyclical characteristic in China. The results show that:(1) the pro-cyclicality of credit risk on large banks are more obvious than City Commercial Bank; (2) the adjustment of provision for loan loss reserve to credit growth is counter-cyclical. Further study found that counter-cyclical performance of large banks was not significant, City Commercial Bank's loan loss provisioning for loan growth of counter-cyclical adjustment mechanism are obvious. This paper recommends to take counter-cyclical loan loss reserve management measures and non-discretionary manner to deal with the risk of bank credit.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lei Pang
AU  - Guangbin Zhang
PY  - 2017/04
DA  - 2017/04
TI  - Credit Risk and Bank Credit Behavior under the New Normal Economy
BT  - Proceedings of the 2017 International Conference on Innovations in Economic Management and Social Science (IEMSS 2017)
PB  - Atlantis Press
SP  - 686
EP  - 690
SN  - 2352-5428
UR  - https://doi.org/10.2991/iemss-17.2017.137
DO  - 10.2991/iemss-17.2017.137
ID  - Pang2017/04
ER  -