The Research On Application Of Auction Into Solving The NPL In Commercial Banks

Auction theory has been applied into practice successfully. In recent years, with the development of game theory, information economy as well as mechanism design, auction theory attaches more importance. Great influence has been produced by large-scale auction, for example, spectrum auction in the U.K. and oil drawing rights in the U.S.A. as well as European 3G auction.Nowadays, the reform of banks has been involved in the whole economic reform, but it is of great importance to solve the NPL1 in commercial banks. In my opinion ,auction is the best way to deal with so large NPL in Chinese commercial banks compared with other ways that we have used.The thesis reviews the history of auction theory and analyzes factors that have an effect on auction outcome, including risk attitude, affiliation, and further explores how to apply the theory into solving the NPL in Chinese commercial banks and employs dynamic analysis.