The reduction cost of nonperforming loan: evidence from China’s commercial bank |
| |
| Authors: | Lei Shi Marek Vochozka |
| |
| Institution: | 1. School of Economics and Business Administration, Chongqing University, Chongqing, China;2. Institute of Technology and Business in Ceske, Budejovice, Czech Republic |
| |
| Abstract: | The nonperforming loans (NPLs) are co-generated by creating the profit in a bank, and this article build a joint production model to measure the reduction cost of nonperforming cost. By using a data set of China’s 13 commercial banks, the conclusions show that the reduction cost of NPLs is lower, which suggests that it is not a good choice for China’s commercial bank to hold the NPLs. |
| |
| Keywords: | Nonperforming loans reduction cost joint production directional distance function |
|
|
