Abstract
[Purpose] This study analyzed whether domestic banks set more the loan loss provisions(LLP) and loan loss allowances(LLA) than other years during the COVID-19 crisis in 2020.
 [Methodology] This study was conducted from 2011 to 2020 with the sample of 146 banks and 6 local banks. This study took dummy variables in 2020 when Corona 19 was broke out, and analyzed the effects on LLP and LLA.
 [Findings] As a result of the univariate analysis, the COVID-19 dummy variable showed a statistically significant positive (+) correlation at the 1% level with LLP and LLA, and the average of LLP and LLA was significantly higher in the COVID-19 outbreak year. As a result of multiple regression analysis, in 2020, at the 1% significance level, LLP and LLA was shown to be higher than in other years
 [Implications] This study will contribute to clarifying that banks have lowered earnings by setting a large amount of LLP and LLA at their discretion in order to avoid the political costs that can be raised in terms of pain sharing and equity in the COVID-19 crisis.
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