How Accounting Measurement Affect Banks’ Investment Strategy / Runs in Shadow Banking: Evidence from Chinese P2P Lending Market
How Accounting Measurement Affect Banks’ Investment Strategy
The FASB (Financial Accounting Standard Board) has issued a new standard which substantially changed the way to account for loan loss provisions. The new standard requires banks to use Current Expected Credit Loss method to account for loan losses, switching from the incurred loss method. Some community banks argue the estimate is highly uncertain and the implementation is too costly. Some banks argue that this could force them to reconsider long-term mortgage loans. In this project we will use the staggered implementation for public/private banks and examine how the measurement rule change affects banks’ real decisions.
Data collection and literature review
Fluent with STATA and SAS for data anlalysis.
Runs in Shadow Banking: Evidence from Chinese P2P Lending Market
HSSRO Application Link
Project Year: Summer 2019 Herb Scarf Summer Research Projects