Abstract: In this paper, loan loss provisions are divided into two types according to the different management motivations, that is, the discretionary component and nondiscretionary component. Based on data of China's listed Banks in 2003-2012, an empirical analysis is made about the influence of loan loss provisioning on bank lending using dynamic panel data model. We found a significant pro-cyclical behavior in the commercial bank loan provisions, as the nondiscretionary component is in a dominant position, and the mitigation effect of income smoothing motivation and signal motivation on commercial banks’ pro-cyclical is limited. So a Counter-cyclical mechanism of loan loss provisions should be established based on the expected loss model.