| Loan loss provision is an accounting item stipulated by law,which reflects the expected loss in loan portfolios of commercial banks.The efficiency of withdrawing provision will affect the quality of financial reports and the soundness of bank industry.As one of the emphases of supervision,loan loss provision has drew academic attention since 2013.Scholars discussed about the high none-performing loan rate(NPLR)in China and the potential effect on Chinese economy.As one of the risk defensing measure,loan loss provision became increasingly important.The efficiency of withdrawing loan loss provision can be defined as the validity of provision decisions made by bank managers under existing condition.On one hand,the loan loss provision could affect the quality of loan assets and the risk management level of commercial banks,on the other hand,it could influence the profit in financial reports.We based our research on the data of Chinese listed commercial banks from 2009 to 2015.By using the DEA methods,we chose to illustrate the performance and changes in withdrawing efficiency from static and dynamic state.We also tried to discover the influencing factors of this efficiency.As a result,we indeed found inefficiency in provision withdrawing of Chinese commercial banks,which varied between different classes of banks.The structure of this paper is consisted by five parts.The first one introduces the research goals,research background and meanings of this paper.Then we present the relevant research about loan loss provision in commercial banks.In the third part,we introduce the relevant laws and regulations of loan loss provision in China,includingthe development of the supervision system and some key indicators.Modeling is the fourth part,we use the DEA method to analyze the efficiency of loan loss provision of Chinese banks.On the final part,we state conclusion and give some suggestion for future research and efficiency improving. |
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