Central Banks' Bad Loans Empirical Research

The dissertation emphasizes on the problem of non-performing re-loans of the People's Bank of China(PBC,central bank of china) and intents to find out what causes PBC's non-performing re-loans and what effective measure we can adopt to solve the problem.The dissertation carries out the studies from the content as follows:The difinition of non-performing re-loans and non-performing re-loans of central bank.In fact,re-loans of PBC is very different from that in western developed countries,and as to solve the problem,the dissertation has to redifine non-performing re-loans and non-performing re-loans of central bank.The basic theory of non- performing loans.At present,the theory of non- performing loans is based on loans of commercial banks,and which is a positivist approach to non-performing re-loans of central bank.Amount of non-performing re-loans of PBC.There exist huge non-performing re-loans with the amount above 2,000 billions.Native banking institutions,with 1,700 billions non- performing assets,have been not generally adopt market principle,which,to some extent,may tum into the PBC's loans.Therefore,the amount of non-performing of PBC trends to enlarge.Non-performing re-loans of PBC will do a lot of harm.On one hand, the PBC's re-loans have played a significant role in the rapid economic growth of the past 30 years upon Chinese reforming and opening up and contributed a lot to the control of finacial risk afer finaicial cisis in Asia.On the other hand,the re-loans of PBC lurked with plenty of inflation risk,finance risk and even morality risk.Causes of non-performing re-loans of PBC.It suggests reasonable that PBC's non-performing re-loans are related to non-performing re-loans of the commercial banks,credit re-loans and the re-loans used for financial stability,and,in fcat,the key reason is due to deformity of the system to supervise or administrate and ownership.The dissertation puts forward two approaches that we could adopt to solve the problem of PBC's non-performing re-loans,one is to make endeavors to deal with current non-performing re-loans,and the other is to avoid producing the new ones.As to the former approach,the existing PBC's non-performing re-loans may be compensated by the fiscal revenues.With the dificulty to reclaim re-loans and low fiscal revenues,it is necessary for Chinese government to enlarge fiscal revenues resources with mainly collecting state-owned enterprises' profits.We should set up special native and oversea assets managermengt corporations to deal with current non-performing re-loans.As to the latter approach,the measures of avoiding the new PBC's non-performing re-loans should pay more attention to ownership reform in national economy and supervising or administrating national assets.Specificly,that is,to further and widen the market-dominated economic system reform,interiorly,to establish strict supervisory mechanism in state-owned enterprises and commercial banks and,exteriorly,to build up all kinds of supervisory systems such as transparency.