Deming Dai

Expected Credit Loss Provisioning, Bank Capital Regulation, and Systemic Risk: Evidence from the Chinese Regulatory Context

This study examines the effect of expected credit loss (ECL) provisioning on the ability of bank capital to mitigate systemic risk based on the Chinese regulatory context, where regulators emphasize the adequacy of loan loss provisions (LLPs) over their timeliness. We find that the ECL model increases LLP adequacy in C...