银行家感知不良贷款的成因在银行外文翻译.docx

1、银行家感知不良贷款的成因在银行外文翻译外文翻译原文BankersPerceptions on Causes of Bad Loans in BanksMaterial Source:IIMT Author:Gunjan M.SanjeevA major problem being observed all over the world in the banking sector is the problem of bad loans.The first step of building a stable and strong financial system is to minimize th

2、e non-performing loans.As per the official figures of IMF(2001),the bad debts as a proportion of total loans is 2.5% for US,5.4%for Korea,12.5%for India,19.3 for Malaysia,25%for China and 45%for Thailand. The non-performing loans have been a matter of concern for all the nations across the globe.Res

3、erve Bank of India(RBI)defines NPA as:An asset,including a leased asset,becomes non-performing when it ceases to generate income for the bank. Anon performing asset(NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained past due for a speci

4、fied period of time (90 days, March 31,2004 onwards). It has been observed that the failing banks have often shown a level of bad loans.A number of researches have indicated that such ailing banks are in no way near the best practice frontier(Barr et al.1994;Berger et al.1997).Some researches have c

5、learly indicated a negative impact of bad loans on the efficiencies of the banks(Resti,1995).“Increase innonperforming loans tend to be followed by decrease in measured cost efficiency,suggesting that high levels of problem loans cause banks to increase spending on monitoring,working out,and/or sell

6、ing off these loans,and possibly become more diligent in administering the portion of their existing loan portfolio that is currently performing”(Berger,et al.1997). The non-performing loans have been found to be influenced by both endogenous and exogenous factors to the bank.Thus it becomes importa

7、nt to study and identify the key factors that contribute to large levels of bad loans in banks across the countries.In recent times,tough initiatives such as the Securitization Act coupled with other initiatives such as the Corporate Debt Restructuring (CDR) mechanism have been taken up by the polic

8、y makers.These,too,are not free from bottlenecks.Further,they are a post reactive mechanism to handle loans that have already gone bad.Thus it is imperative to determine what causes the NPAs so that bankers and policy makers can adopt a pro-active approach.MethodologyObjectives of the StudyThe objec

9、tives of the study are to identify the endogenous(internal)and exogenous (external) factors,which are contributing to the rising levels of bad loans in the banking sector.DefinitionsEndogenous(Internal)factors are defined to be those factors that are under the control of the bank.The terms endogenou

10、s and internal have been used interchangeably later in the paper.The internal factors have been broadly classified to be related to either the“appraisal”mechanism or the “monitoring and controlling mechanism”.Appraisal mechanism refers to the evaluation of the loan application so as to judge whether

11、 an applicant should be granted a loan or not.Monitoring and Controlling mechanism refers to the post loan disbursal activities of the bank managers that contribute to timely payment of interest/principal repayment by the borrower.Exogenous(External)factors are defined to be those that are beyond th

12、e control of the bank.The factors being considered are listed in Table 1 and Table 2.Data Collection ToolsMost of the studies carried out in the sphere of bad loans have been based on the secondary data.This study has used primary data from commercial banks operating in India.The data collection too

13、lis a structured questionnaire,which has been designed on the basis of semi-structured interviews with a few credit managers.The specialized nature of desired information meant that participants had to be credit managers who were knowledgeable about the research topic.The parameters are internal and

14、 external factors,which have been carefully identified.SamplingThe sample consists of 37 respondents from the Indian commercial banks.The sample includes representation from public,private and foreign banks.Banks were chosen using random sampling and the branches were chosen using purposive sampling

15、.The questionnaires were filled up in front of the researcher.The respondents were asked to rate the level of influence of the various factors given in the questionnaires on a 5-point scale where“0”refers to nil,“1”refers to low,“2”refers tomedium,“3”refers to high and“4”refers to very high.Formulat

16、ion of Hypotheses Firstly,internal factors are considered as a group.Then,the internal factors related to“appraisal”and “monitoring and control”are taken separately so that it can be seen that which out of the two categories needs higher attention.Similarly,theimpact of external factors on the whole is investigated.Subsequently,a hypothesis isformulated for each of the internal and externalfactors to identify the most critical one