Authors: Kryzanowski L, Liu J, Zhang J
We examine the resilience of Chinese banks during the COVID-19 pandemic by investigating non-performing loan (NPL) ratios. We find that despite the reduction in the growth rate of total bank lending, bank NPL ratios significantly increase during the COVID-19 crisis. Banks with high-quality capital are more effective in controlling their NPL ratios during the Crisis. Big Five banks, state-owned banks and domestic banks have lower NPL ratios than their counterparts during the Crisis.
Keywords: Bank ownership; COVID-19; Capital ratios; NPL, non-performing loan; Non-performing loans;
PubMed: https://pubmed.ncbi.nlm.nih.gov/36164498/
DOI: 10.1016/j.frl.2022.103372