Provision for dubious settlement credits and control of solvency limits in banking institutions in Brazil
This study aimed to verify how the provision for dubious settlement credits can be influenced by the level of regulatory capital in banking institutions in Brazil to maintain its solvency limit, the Basel index. And, check if there is a motivation for income smoothing, earnings management. The data...
| Main Authors: | , |
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| Format: | Article |
| Language: | Portuguese |
| Published: |
Universidade Federal de Santa Catarina
2019-12-01
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| Series: | Revista Contemporânea de Contabilidade |
| Subjects: | |
| Online Access: | https://periodicos.ufsc.br/index.php/contabilidade/article/view/55383 |
| Summary: | This study aimed to verify how the provision for dubious settlement credits can be influenced by the level of regulatory capital in banking institutions in Brazil to maintain its solvency limit, the Basel index. And, check if there is a motivation for income smoothing, earnings management. The data of 115 financial institutions located in Brazil were used by the Central Bank of Brazil (BACEN) in the years 2010 to 2016. In general, the findings illustrate that, the result of credit operations explains a rise in provisions for dubious settlement credits, but the analysis did not point out that the provision of credit for dubious settlement is being managed in function of regulatory capital levels. The model did not demonstrate that the volume of credit provision for dubious settlement is related to the amount of capital of the banking financial institutions of Brazil. |
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| ISSN: | 1807-1821 2175-8069 |