The Vanishing Interest Income of Chinese Banks
Kauko, Karlo (11.02.2021)
Tässä tietueessa ei ole tiedostoja, ainoastaan metadata.
Volyymi
20Numero
3
2021
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202111102101Tiivistelmä
Chinese banks likely have more nonperforming loans (NPLs) than officially reported. Banks’ NPLs often deviate from Benford's law. As hidden NPLs earn no interest income, loan quality problems may erode the gross interest income of banks. Using stochastic frontier analysis, we estimate the interest income of a hypothetical profit-maximizing Chinese bank with no credit quality problems. Taking the deviation of actual interest income from the calculated efficient income, we then attempt to reveal the amount of hidden NPLs in Chinese banks. Our results uncover a substantial weakening in the quality of Chinese bank loan portfolios in 2016.
Julkaisuhuomautus
Published in BOFIT DP 2/2020 http://urn.fi/URN:NBN:fi:bof-202002131057