文档介绍：NPLs of Chinese State-owned Banks: Current Status, Origins and Disposal Methods
M. Chen, C. Jia and X. Xu
Guanghua School of Management
Peking University
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Overview of China’s Banking Sector
Brief history
Before 1979: PBC
1979-84: Establishment of four SOCBs
1986- : Establishment of joint-stock banks
2001- : mercial Banks
Market share by assets (Q3, 2004)
SCOBs: %
Joint-stock banks: %
2
2
NPLs of Four SOCBs
3
3
NPLs of Four SOCBs
4
4
NPLs of Four SOCBs
5
5
Origins of NPLs
Policy loans
SOEs versus private sector
High level of debt of panies
Interest rate control
Low base rate; lower than USA, India and Korea
Low spread between the deposit and lending rates
Laeven and Majnoni (2003): in 2000, China: % and average of 106 countries: %
Poor management and moral hazard
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6
Year
Stock issue
Loan growth
Stock issue/ Loan growth
1993
1994
1995
1996
1997
1998
1999
2000
2001
Capitals Raised by panies
7
7
2002
2003
Data source: INFOBANK
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8
Reasons for the Decrease in NPLs ratio
Increase in total amount of loans
In 2003, increase was RMB 2,770 billions (24% total loans between 1991-2003)
Decrease in NPLs
Capital injection by government
Transfer of NPLs to AMCs
In Q2 of 2003, NPLs increased by RMB billion after taking into account of NPLs transfers
Change in maturity structure of loans
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9
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