Lessons from China's past banking bailouts
Xia, Le (21.01.2020)
Numero
3/2020Julkaisija
Suomen PankkiBank of Finland
2020
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202001211025Tiivistelmä
China’s banking sector, particularly small and medium-sized banks, today face a headwind of asset quality deterioration. Revisiting Chinese bank rescues from the early 2000s, we examine how the authorities tackled a severe rise in non-performing loans (NPLs). Following a discussion on costsharing among government agencies in that fitful NPL clean-up, we identify policy measures most suited to dealing with the current NPL situation.
Sisällysluettelo
Abstract .. 3
Introduction .. 4
The rise of NPL problems at Chinese banks .. 4
NPL clean-up during 1999–2001 .. 6
Bank restructurings from 2002 onwards .. 8
The second round of NPL transfers .. 8
Additional capital injection from Huijin .. 10
Foreign equity participation .. 10
NPL clean-up costs .. 11
Bank restructuring and public debt .. 12
Conclusions and policy suggestions .. 13
References .. 15
Introduction .. 4
The rise of NPL problems at Chinese banks .. 4
NPL clean-up during 1999–2001 .. 6
Bank restructurings from 2002 onwards .. 8
The second round of NPL transfers .. 8
Additional capital injection from Huijin .. 10
Foreign equity participation .. 10
NPL clean-up costs .. 11
Bank restructuring and public debt .. 12
Conclusions and policy suggestions .. 13
References .. 15