| Author: | Liu, Haihong |
| Title: | Discussion of influence on commercial Bank's liquidity caused by the current liability problem between banks and enterprises (original in Chinese) |
| Journal: | Research on Financial and Economic Problems (c)
1999 : 2, p.62-63 |
| Index terms: | DEBT CORPORATE FINANCE COMMERCIAL BANKS LOANS CHINA |
| Language: | chn |
| Abstract: | The liability problem between banks and enterprises, which concentrates on high debts of state-owned enterprises and huge bad debts of banks, has combined the fate of banks closely with that of enterprises. Under the circumstance of high debts burdened with state-owned enterprises, while the number of loss-making enterprises continues to increase, banks' bad loan assets also increase. Analysing from the angle of banks, there are reasons as follows: (1)There exists serious deficiency in the operation of commercial banks' assets and liability.(2)The proportion of commercial banks loans for fixed assets is excessively high.(3) state-owned commercial banks have undertaken too many social duties. Therefore, they often have to deviate from the liquidity principle in their operational behaviours. |
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