March 31, 2006
Measurement Problems
This bit, taken from an IMF working paper titled Progress in China’s Banking Sector Reform: Has Bank Behavior Changed? by Richard Podpiera, made me chuckle:
The reported NPL ratio for loans extended after 2000 has been approximately 2 percent in aggregate, dramatically lower than the NPL ratio for older loans (over 60 percent for some banks).
The striking difference between the reported credit quality of old and new loans suggests either a dramatic improvement of the underlying credit quality since 2000 or measurement problems.
- via Paul Kedrosky -
Cat: | Time: 6:05 pm (utc+8)