IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

China's Nonperforming Loans and National Comprehensive Liability

  • Fan Gang

    (National Economic Research Institute China Reform Foundation C-510 Gou-Hong Building Mu-Xi-Di, Beijing, 100038 China)

Registered author(s):

    The paper presents a comprehensive analysis of China's financial situation. The main conclusion is that the financial risk of the Chinese economy is less serious than one might have predicted based on the level of the banks' nonperforming loans (NPLs), which is equivalent to 40 percent of China's GDP. If government debt (amounting to 16 percent of GDP) and short-term foreign commercial debt (amounting to 1 percent of GDP) are taken into consideration, China's overall financial risk can be regarded as still manageable, given current growth rates. This explains why China continues to enjoy financial stability despite the high level of NPLs. The paper also suggests that the correct policy for forcing reform of banks and state-owned enterprises is to keep the NPLs on their balance sheets, rather than to "swap" them into government accounts. Copyright (c) 2003 Center for International Development and the Massachusetts Institute of Technology.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/153535103322022931
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by MIT Press in its journal Asian Economic Papers.

    Volume (Year): 2 (2003)
    Issue (Month): 1 ()
    Pages: 145-152

    as
    in new window

    Handle: RePEc:tpr:asiaec:v:2:y:2003:i:1:p:145-152
    Contact details of provider: Web page: http://mitpress.mit.edu/journals/

    Order Information: Web: http://www.mitpressjournals.org/loi/asep

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:tpr:asiaec:v:2:y:2003:i:1:p:145-152. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.