17-01-2014, 08:28 PM
(17-01-2014, 08:00 PM)CityFarmer Wrote: [ -> ](17-01-2014, 06:03 PM)freedom Wrote: [ -> ]Is there trusted data for DBS, OCBC or UOB for their NPLs?
Then why only doubt banks from China? not banks all over the world?
People believe what they want to believe, not necessarily the truth.
Is it possible that banks from China hide their NPLs? It is possible, but that applies to all banks in the world.
That is reason to doubt, because it happened once in 1998 with a unique solution of asset management companies to "absorb" the NPLs, which is estimated as 30%. The actual number still unknown.
Not exactly.
What happened in 1998 is not different from what US government and the Fed did to the US banks during the financial crisis or the ECB and EU governments did to the European banks or the UK government and BoE did to UK banks.
Of course, when US government and the Fed did it, they are heroes to save the world. When the Chinese government did it, it is evil.
For Citi or AIG or whatever European financial institutions or local banks during AFC, they did not hide their NPLs, they just can't predict the NPLs. NPLs are not constant, they are changing every minute with the development of the economy of the world.
The loans on the Chinese banks are not non-performing if the interest and the principal are being paid. By any standard, you can't just call it non-performing. Of course, if the economic development worsens, some loans become non-performing. But before they go bad, they are performing loans.