Thesis-2011-Zhang.pdf (3.93 MB)
The role of banks in transition economies: a case study of China with an emphasis on non-performing loans
thesis
posted on 2011-04-12, 11:18 authored by Wei ZhangThis research evaluates the factors that caused unprecedented high levels of
non-performing loans (NPLs) in Chinese banks and the measures that have been taken
to deal with them. In examining the surrounding issues recommendations are made,
which might resolve or at least ameliorate China's non-performing loans problem. An
extensive literature is drawn upon and a systematic examination of the factors that were
responsible for China's NPLs is presented.
The research aims and objectives, and the subsequent research themes were identified
after conducting field research in Chinese banks. Six managers in Chinese banks were
interviewed and their views on non-performing loans in their respective banks were
obtained. These banks included: the Industrial and Commercial Bank of China, the
China Construction Bank, the Bank of China, the Agricultural Bank of China, the State
and Development Bank and Citic Bank. The results of the interviews were used to
design the questionnaire, which was distributed to 16 different banks. These banks are
broadly representative of the main types of bank within China and include four
state-owned commercial banks, seven joint-stock commercial banks, three foreign
banks, one policy bank and one city commercial bank.
Content analysis and descriptive statistical techniques were used to analyse the data and
the findings revealed that lending managers generally lack adequate incentives to make
efficient lending decisions. Moreover, although political interference in bank lending is
quite widespread within China, it is not the only issue and certainly not the major issue
in explaining why managers have a tendency to select inefficient projects. The measures
taken to deal with NPLs in Chinese banking are also examined and the findings suggest
that these have not been totally effective in resolving the problem.
History
School
- Business and Economics
Department
- Business
Publisher
© Wei ZhangPublication date
2011Notes
A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.EThOS Persistent ID
uk.bl.ethos.546746Language
- en