LOAN LOSS PROVISIONING: THE COMMERCIAL BANKING SYSTEM IN BARBADOS

Author(s): CRAIGWELL, ROLAND; ELLIOTT, WAYNE; (2010)

Created 26 Jul, 2010
Categories Working Papers Roland Craigwell Special Collection
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Loan loss provisions provide a financial cushion to institutions by discouraging low levels of bank capital. The purpose of this paper is to investigate the process of loan provisioning within the commercial banks of Barbados. It will place particular emphasis on how commercial banks set their provisional standards and levels. There will also be an evaluation of the expected impact of commercial banks’ provisioning on the decisions made by the Central Bank.

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