Bank Non-Performing Loans (NPLS) A Dynamic Model and Analysis in China英文文献资料.docVIP

Modern Economy, 2012, 3, 100-110 /10.4236/me.2012.31014 Published Online January 2012 (http://www.SciRP.org/journal/me) Bank Non-Performing Loans (NPL ): A Dynamic Model S and Analysis in China* Shihong Zeng School of Economics Management, Beijing University of Technology, Beijing, China Email: zengshihong2000@ Received July 16, 2011; revised August 28, 2011; accepted September 29, 2011 ABSTRACT In this paper we report on a utility function (loss function) and model that we designed by using optimal control theory based on previous studies. we found that: 1) the Hamiltonian multiplier of the bank NPLs growth rate in the model was obtained using the negative derivitive of the utility (defined as loan function minus non-performing loan function) with respect to the NPLs multiplied by a factor which expresses the rate of change in NPLs over time with respect to the ?N ? ?1 ? ???vm N m?1? ? ?1 ? ?U N? ; 2) the model determines the equilibrium value of the saddle NPLs, the formula is point of the bank NPLs; 3) the model can explain the NPLS phenomenon in the Chinese banking system as mainly sig- nificant in the state owned banks (SOBS); 4) The paper supports the following hypothesis by considering the situation in China: the equilibrium value of the bank NPLs is dependent on micro-economic factors but influenced by macro-eco- nomic factors. Keywords: Bank Non-Performing Loans; Finance Frangibility; Chinese Banking System 1. Introduction ment of four asset management companies (AMCs) to deal with bad loans. Drawing on the experiences of the Reso- lution Trust Corporation in the United States and bank restructuring in the Central European transition economi- es, Bonin and Huang (2001) [9] argued that the original AMCs design would not be successful in resolving the existing NPLs, and this design could not prevent the creation of new bad loans. They recommended a modifi- cation of the current proposal, which redefin