China's Troubled Bank Loans, Workout & Prevention

This book examines the significant and increasing problem of State bank non-performing loans (NPLs) in China, which have undermined the stability of the banking system and the efficient operation of markets.

The accumulation of NPLs in China has been caused by the dominant role of State banks in China's financial markets, weak internal controls within State banks, policy loans to state owned enterprises, unnecessary administrative controls on banks' lending activities, and inappropriate banking regulation and supervision.

The author draws on experiences at national, regional and international level to make recommendations for the development of better workout procedures for existing NPLs. He also examines the role of banking regulation and supervision in preventing accumulation of NPLs and in avoiding the impact of NPLs on the stability of the banking system and the conditions of market discipline.

1. China's Bank Non-Performing Loan Problem: Seriousness, Causes and Solution
2. Non-Performing Loan Workout: Bank Recapitalization and AMC Program
3. Non-Performing Loan Workout: Non-Performing Loan Disposal and Debt Restructuring
4. Non-Performing Loan Prevention: Enhancing Prudential Regulation and Supervision
5. Non-Performing Loan Prevention: Promoti/ng Bank Internal Control Systems
6. Banking Safety Net: Mechanisms for Crisis Management
7. Concluding Observations and Recommendations for Restoring Market Discipline in China