An ABC Guide to Provincial Lending Patterns in China: Progress and Prospects
Richard C. K. Burdekin
Claremont McKenna College - Robert Day School
University of Wisconsin, Whitewater
The Chinese Economy, Forthcoming
Robert Day School of Economics and Finance Research Paper No. 2009-20
With a non-performing loan ratio of over 20% in 2007, and a concentration in China's poorer areas, the Agricultural Bank of China (ABC) seemed an unlikely candidate for a successful initial public offering. The major capital injection the bank received in November 2008 was preceded by signs of a reduced proclivity to lend to China’s loss-making state-owned enterprises over our 1998-2007 sample period, however. Although some evidence of redistributive lending practices remains, ABC's prospects may not actually be any worse than those of the other big state-owned banks that undertook initial public offerings in 2005-2006.
Number of Pages in PDF File: 27
Keywords: Chinese banks, Agricultural Bank of China, lending, state-owned enterprises, provincial income, privatization
JEL Classification: G21Accepted Paper Series
Date posted: November 21, 2009 ; Last revised: October 18, 2010
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