About Our Country Commercial Bank Loan Loss To Make Periodic Characteristics Of Empirical Research

The article comprehensively studies the cyclical behaviors of loan loss provision accrual of Chinese commercial banks. Provision is the "cushion" against the risk from uncollectible loans. Theoretically it should be notably characterized by counter-cyclical tendency. Contrary to the conclusion, this article points out that certain institutional obstacles, such as accrual method, accounting treatment and tax levy, result in procyclicality.This article gives an empirical analysis in the present situation of provision accrual of Chinese listed banks. The empirical analysis mainly uses financial analysis and quantitative analysis. Its result proves the trend-following feature in terms of provision accrual.In relation to CBRC’s positive view of dynamic provisioning at the end of year 2010, this article gives its feasibility and challenage in the current circumstances. Also, it provides policy proposals for defects of Chinese current provision system, with the concern of accounting, tax and regulatory system.