The banking system is prone to the credit risk associated with the problem loans and difficulties in loan recoveries particularly during turbulence. However, this problem can be partly offset by the loan loss provisions (LLPs) and stronger capital adequacy ratio. Therefore, it is important for the banks to properly manage the LLPs as it can overcome the financial difficulties in the banking system by providing the reserve to cover the expected losses. Previously, it has been debated that LLPs have been influenced by the motivation to manage capital. Apart from the issue of capital management, the other factors of determinant such as macroeconomic factors are expected to affect the loan loss provisions decision. Therefore, the main purpose of the study is to investigate the presence of a capital management incentive in affecting the loan loss provisioning decision of Islamic banks in Asia comparing the crisis period of 2007–2009 with the post crisis period of 2010–2012. Further, this paper examines the influence of macroeconomic factors on loan loss provisions. The investigation aims at detecting whether Asian Islamic banks behave differently in the use of capital management for LLPs based on the capital management theory.