We utilise Benford’s Law, which predicts the frequencies in different digits in data, to test if balance sheet and income statement data used to assess bank soundness were manipulated prior to, and also during, the global financial crisis. We find that banks adjust loan loss provisions to manipulate earnings and income upwards. Distressed institutions that have stronger incentives to conceal their financial difficulties also manipulate loan loss allowances and non-performing loans downwards. Moreover, manipulation is magnified during the crisis and expands to encompass regulatory capital.

中文翻译：

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应用本福德定律来检测银行业中的会计数据操纵

我们利用本福德定律来预测数据中不同数字的频率，以测试用于评估银行稳健性的资产负债表和损益表数据是否在全球金融危机之前和期间被操纵。我们发现银行调整贷款损失准备金以向上操纵收益和收入。有更大动机隐瞒财务困难的不良机构也会向下操纵贷款损失准备金和不良贷款。此外，操纵在危机期间被放大并扩展到包括监管资本。