bad loans

Investors also worry that Chinese bank lending to local governments for stimulus programs could sour into bad loans in a year or two.

Loan Loss Provision An expense set aside as an allowance for bad loans (customer defaults, or terms of a loan have to be renegotiated, etc).

Quite the opposite, ATE has long been used by administrations as something of a trash bin for bad loans.

Experts seem to agree that the trouble started with bad loans in the housing industry, and grew into a widespread crisis of confidence.

That lending is expected to produce a flurry of bad loans as projects funded over the past two years fail to turn a profit.

Yes, low prices are bad for homeowners who are trying to sell and for banks that have lots of bad loans on their books.

But bad loans can be written off and a few years of even mid-single digit GDP growth will absorb most of the investment excess.

But he said the bank had sought extra capital to cover an increase in bad loans this year to 8 to 10 per cent.

However, the shareholders of the banks will not be so pleased if the credit binge ends up in a wave of new bad loans.

The bank set aside less money to cover bad loans and said it expected to get permission from the Federal Reserve to raise its dividend.

For all the fears of bad loans and impending doom at Chinese banks, their latest earnings failed to live up to such doubts.

All it will take is a fall in housing, or some sort of economic slowdown, to reveal an untold number of bad loans.

Some experts fear that too much of the stimulus money was put into unprofitable projects and bad loans that will be exposed in a few years.

Too much bad loans make for the financial institution to be very difficult in management .

The other five failed banks are from Spain, where the bursting of a real-estate bubble has saddled lenders with swelling piles of bad loans.

Yet this mountain of bad loans did not portend an economic slowdown, undermine public finances or derail economic growth.

But it has nothing to do with a bank's capacity to absorb losses from bad loans without going bankrupt.

White House spokesman, Robert Gibbs, says several agencies are looking into the way banks have been processing bad loans.

Some analysts fear the sharp increase in lending included many bad loans that will begin to show up over the next few years.

When risks materialise in the form of bad loans that cannot be recovered, the banks have to write off those loans.

If the land market weakens, China could still end up with a large volume of bad loans to digest after its recent investment spree.

Let's leave aside worries of a property bubble and a new crop of bad loans. Forget the specter of protectionism.

As a result that state-owned enterprises had not solved the problem of inefficiency, their large volume of debts turned into bad loans.

It didn't work: the banks, laden with bad loans, faced outsize insolvency problems, not just a shortage of liquid funds.

I'm willing to bet that if all the bad loans of 2009 and 2010 were finally added up, more than a few Chinese banks would be bankrupt.

The only things banks can do is avoid making bad loans in a recession that is going to get worse, and also cut costs.

Could the massive Chinese "credit card" bill go unpaid, leaving banks with a pile of bad loans and depressed earnings for years to come?

For now, the lending surge to local governments is still too recent for many bad loans to have shown up.

Republican fiscal conservatives argue that taxpayer funds should not be bailing out failed institutions who made bad loans.

This does not mean there will not be bad loans resulting from the huge amount of stimulus lending.

Another factor hanging over Chinese banks is the potential for an increase in bad loans if the economy deteriorates.

Should bad loans increase, China is well able to recapitalise its financial system.

And when a bank failed, the Swedish regulators reorganized the institution with "good" loans and "bad" loans under separate managements.

The banking system is still hobbled by bad loans to state enterprises and state projects that Mr. Zhu championed.

Anywonder, then, that today's huge run-up in loans -- and bad loans -- byChina's banks is making some critics nervous?

Countrywide has lost billions on bad loans, and its lending activities are the target of lawsuits.

But, besides worries about hidden bad loans held by savings banks, investors see lack of growth as the main problem.

Until at least 1994, regulators actively colluded with banks to hide the scale of bad loans.

AgBank has long been considered the weakest of China's big banks, with a bigger legacy of bad loans that delayed its coming to market.

Banks should be recapitalized, bad loans provisioned fully and state-owned companies' runaway indebtedness curbed.

While absolute levels of bad loans haven't yet ticked up, the amount of total loans has ballooned.

'Who are the financial magicians Paulson is going to hire' to handle bad loans?

To combat bad loans and hopefully stymie inflation, reserve requirement have been raised three times for Chinese banks.

Some bad loans were guaranteed by the Ministry of Finance and remained on the banks' balance sheets as "restructuring receivables" .

Standard Chartered has reported a 10% rise in first-half profit, helped by a reduction in its impairment provisions for bad loans.

"But I think the chances of a big increase in bad loans in the banking sector are very small. "

All the same, Bedford thinks the fears about the bad loans lurking off the balance sheet are overblown.

Shares in Greek lender Alpha Bank fell 2. 2% as losses on bad loans continued to increase and profit fell 62%.

On Jan. 12, government regulators ordered state-owned banks to put more money aside as reserves against bad loans.

2006 figures, the latest available, show the companies have disposed of a large chunk of the bad loans, but only at big discounts.

arcane structures like collateralized debt obligations were just the vehicle through which these bad loans were made this time round.

But life won't be much easier given all the bad loans that still are piling up across the country.

The mutual mistrust among banks reflects worries about the bad loans they have made and their ability to raise funds in a hurry.

Governments have discovered that they may have to rescue banks when the latter make bad loans or buy bad assets abroad.

Economists warned that China's banks could become stuck with bad loans, and Chinese leaders told them in July to reduce lending.

Mitsubishi Tokyo Financialpuorgwas a key decliner after forecast earnings downgrades as it absorbs UFJ's bad loans.

One innovation of this paper is to correct the bad loans rate published by official.

The 17 caja banks must reveal details about their bad loans and property holdings by January 31, which investors should watch out for.

As the economy weakens, Irish borrowers will find it harder to repay their loans, saddling the country's banks with more bad loans.

China's banking regulator is warning lenders that bad loans to property developers are likely to soar, as sales slow.

In an economy that is still expected to grow at more than 9% this year bad loans may rise, but they are not likely to sky-rocket.

However, different from the World Bank, IFC used to cancel some bad loans after verification.

Depending on how Beijing resolves the situation, an increase in bad loans could present opportunities for foreign investors.

'A tightening of monetary policy, therefore, may leave projects incomplete and lead to a build-up of bad loans in the banking sector. '

Just as bad loans are made in good times, now is the time to finance business investment for the inevitable global recovery.

Some China watchers believe the sector's bad loans are so vast that the government may need every cent of its trillion-dollar reserves.

Some policy makers already are raising concerns that a high number of bad loans will clog up the financial system.

But sooner than expected, the speculative bubble burst as it became clear that a lot of bad loans had been made.

New transparency rules for banks, to clarify exposures to bad loans against building-land or unsold property, are in place.

This paper, through analyzing causes of bad loans, try to make some explorations in this area.

The two banks posted an alarming rise in bad loans during the first half of the year.

If the reserve is like a protective wall, losses from bad loans eat a hole in that wall.

Because many SOEs have invested in risky projects, bad loans will increase if the bubble bursts and triggers a bank crisis.

Some economists also worry that the spate of new lending will burden banks with more bad loans.

Healthy banks would have to "increase lending above baseline levels" , a stricture that could lead to more bad loans.

China does face a host of risks, including a property bubble, mounting local government debt and potential rises in bad loans.

Companies like Encore buy bad loans from banks and credit card issuers for pennies on the dollar and pocket the cash they collect.

A flood of bank lending threatens a future surge in bad loans, while markets for shares and property look dangerously frothy.

But the threat of rising bad loans and the prospect of lower dividends should keep bank investors cautious, even if the stocks look cheap.

Both analysts forecast rising unemployment and higher bankruptcies will keep weighing on bad loans.

These bad loans, also called toxic assets, have weakened American banks and interfered with normal lending.

Certainly bad loans at Chinese banks and massive off-balance sheet debt in the financial sector are legitimate worries.

The banks increased their income by putting less money aside to cover bad loans, rather than expanding lending.

The special account would acquire at face value the bad loans, using only the ministry's IOU as payment.

As part of Beijing's banking reforms ahead of listings, the government 'cleared out the bad loans, but not the bad lenders, ' Mr. Webb says.

State-owned banks hived off bad loans into so-called Asset Management Companies and sold some to foreign investors.

A vicious circle developed, whereby banks' bad loans depressed growth which then created more bad loans.

That has led to fears of a rebound of bad loans.

The drop was in line with expectations but the nation's biggest lender also predicted growing losses from bad loans.

In a worst-case scenario, there could be as much as 7 trillion yuan of bad loans right now, they estimate.

Even more troubling, most of the industry's recent profit burst came from the release of cash that was set aside to cover bad loans.

Ireland's budget deficits grew sharply after it guaranteed the bad loans of the country's biggest banks.

Bad loans will rise again this time, but Tao Wang, also at UBS, argues that banks are in a stronger position than in 1998.

The banks were to write off their bad loans; if that meant they were bust, the government would seize them.

I assume that China would do the same thing this time around if bad loans threatened any of the country's big banks.

Beijing's massive credit stimulus will almost certainly lead to a future surge in bad loans, but so what?

It is also creating a facility, supported by the Federal Reserve, for asset-backed securities which could relieve banks of bad loans.

The regulator will have "reasonable tolerance" for rising bad loans, Liu said.

In America and Europe they have imposed stress tests to see how vulnerable their banks are to bad loans.

The delays were caused, among other things, by the fact nobody knew how many bad loans Agricultural Bank had on its books.

Staff have been cut in vast numbers and about $163bn expended by the government to pay off bad loans and get ICBC's balance sheet in order.

The flood of credit has raised concerns that a new crop of future bad loans could be being created by the banks' rush to lend.

China's banks would still be sitting on bad loans from the 1997 Asian currency crisis except for government-approved accounting magic.

But losses are still piling up on bad loans, and the economy is slowing, meaning more capital is already needed.

Ant banks either have to write off bad loans or they must persuade ant governments to give even more ant money to the grasshopper colonies.

The bailout is intended to rescue bankers from bad loans that threaten to derail the economy .

Under Moody's worst-case scenario, it would mean that banks could be liable for about 1. 7 trillion yuan worth of bad loans.

Beijing used three main tools to manage previous increases in bad loans, all of which passed costs on to bank depositors.

The easy financing also gooses banks' profit margins and allows them to resolve bad loans with ease.

The central bank reckons that German banks will end up writing down as much as 90 billion in bad loans and securities this year and next.

UCB, which was failing under a mountain of bad loans, was seized by the FDIC this month and its assets transferred to East West Bank.

Fears are mounting that Chinese banks will suffer a sharp rise in bad loans following an unprecedented lending spree in 2009.

Investors believe banks need to be more transparent about the number of bad loans and other assets they have on their books.

And when government officials are warning daily about the dangers of bad loans in the banking system?

Te new model shows good identification for the risks, so that it is useful for limit the formation of bad loans.

The result has been calamitous: Bad loans at five once-sleepy banks have snowballed into an existential threat.

But, unlike most other banks, East West raised capital early and sold bad loans fast.

It said China should strengthen credit checks and prevent a rebound in bad loans.

The plan would create a government entity that would buy bad loans.

Demands on banks for put-backs could grow. And there are even questions about who really owns those bad loans.

But almost all respondents feared bad loans will rise sharply in the longer term.

That's all you have to do, let them go bankrupt, let the people who made the bad loans take their losses and start over from a sounder base.

Well, how about one of theoriginal state-owned banks, China Construction Bank, that Cinda hadbought the bad loans from in the first place.

And the government, unlike Japan's in the 1990s, has plenty of money if necessary to write off bad loans.

The inevitable consequence will be a welter of bad loans.

The machinery to remove bad loans from the banking system is already in place.

Its economy has been kept churning by enforced bank lending that could yet rebound in asset price bubbles or a crop of bad loans.

The stock of bank debt and hence the risks of bad loans may therefore still be large.

Bad loans may pile up on banks' books, and China could face an all-out credit crisis.

People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway.

Bad loans could force the government to step in and recapitalize banks.

The banking industry has been the target of recent reforms, but bad loans are on the rise, while the capital market remains underdeveloped .

Those bad loans drove them to the brink of collapse in 2008, forcing their regulator to take them over.

The 2-3 trillion yuan in bad loans would require an equal amount of financing if banks are to avoid loan losses.

And the financial system here is healthier than in Western countries, where banks still have many bad loans on their books.

The clear risk is that politically directed lending creates more overcapacity , poor rates of return and future bad loans for banks.

The banking regulator Monday ordered domestic banks to write off bad loans caused by the devastating earthquake.

These banks also need to cleanse their balance sheets of toxic assets and bad loans.

Based on the theories above, the paper analyses the internal and external causes bringing about the bad loans.

They certainly didn't pay cash. Instead, theyissued bonds to the banks in exchange for the bad loans.

Analysts said a sharp drop in set- asides for bad loans helped the result.

In that scenario, the banks improve, but the taxpayers take the full hit for the bad loans the banks made in years past.

It is paying little more than half the face value for the first Euro16 billion ($21. 5 billion) in bad loans that will be transferred.

Banks also have a big cushion in terms of capital, so a spike in bad loans is unlikely to sink them.

What are your views on the possibility of severe recession in China due to bad loans made by local governments?

Too many bad loans were made, they say. Financial reform didn't come fast enough.

Overall, losses from bad loans have risen by $4 billion in the past year and will continue to climb.

Here in the nation that is too big to fail, as long as the bad loans don't overwhelm the good, the waste is tolerable.

The sharp post-2000 recession generated yet another real estate collapse and more bad loans.

A chunk of the remaining bad loans has been sold, cutting the non-performing loan ratio to 4 per cent from 5. 8 per cent at the end of 2006.

The fear is that an economic downturn and falling profits could lead to a surge in new bad loans.

In addition, the government is working to deflate China's housing bubble, which could produce another round of bad loans.

In the late 1990s, the Chinese government needed a place to dump bad loans left over from the Asian financial crisis.

In order to support the financial industry, which is working under a mountain of bad loans and the credit market fragmentation.

Its Tier 1 capital level, which reflects a bank's ability to absorb bad loans, was 11. 3% of total assets in the first quarter.

Under the plan, the federal government will partner with private investors to buy bad loans made by banks.

Regulators hope to tie up loose endsfrom BBC's collapse under the weight of $3 billion in bad loans.

That is far from trivial, but well below the 40% of GDP that bad loans amounted to in the late 1990s.

Regulators and politicians were slow to respond, allowing thrifts to make more and more bad loans instead of shutting them down.

Cinda says it has received about Rmb1, 000bn in bad loans .

America chose not to buy bad loans off its banks.

Certainly trouble for the Chinese banks will be slow to emerge, given the myriad ways they can avoid or delay recognition of bad loans.

They show, for example, that official data could be seriously underestimating bad loans.

Estimates vary widely on the amount of bad loans in China.

With over ten years of bad loans coming home to roost, the stage was set for Meltdown Monday.

According to some estimates the ratio of bad loans in the banking system could shoot up almost to 10 per cent.

In Japan bad loans were to corporations rather than households, but the problem is essentially the same.

If you can make provisions for bad loans, why not bad maths too?

Taiwanese lenders with strong exposure to consumer loans reported losses last year after writing off T$150bn in bad loans.

I know the fear . . . about the growth in bad loans.

ABC's accumulated bad loans in 2006 were Rmb729bn, or 23. 4 per cent of all loans.

Bank of China Ltd. , for example, has set aside more money for bad loans after just six months than it did for all of 2010.

Under Mr Isaac's watch, the FDIC bought a bundle of Continental's bad loans and also injected money into the bank;

flows of new adjusted bad loans, as a share of performing loans (mortality rates);

On the Relationship between the Adjustment of Financial Structure and the Reduction of Bad Loans

Resolving and Preventing Bad Loans of the Villages, a new Perspective of Public Administration

To Clear up Bad Loans in State-Owned Commercial Banks by Applying Financial Engineering

Negative Effects of Banking Bad Loans to Macroeconomic Operation

At some major banks, the number of bad loans is starting to level off,

Analysis and countermeasures on bad loans of rural Credit agencies

A Preliminary Study on the Influences of Commercial Banks Credit for Bad Loans

On Provision Approach for Bad Loans of Credit Card based on Migration Ratio Model to Comply with International Accounting Rules

Analysis on Japan's Principally Completed Processing of Bad Loans

Indian supreme court set to lay down the law on bad loans

The broader story is that all financial crises tend to be the result of bad loans made in the property market;

How to Handle the Bank Bad Loans: A New Way

The Causes and Resolutions of Bad Loans in State-owned Commercial Banks

Reform of China's Banks, Burdened by Bad Loans, is Priority for Government

bad loans against building-land or unsold property

a tidal wave of bank lending threatens a future surge in bad loans;

bad loans, as a share of total loans;

Asset securitization effective way to resolve bad loans

China's banks in sound shape; bad loans drop

lowering the ratio of bad loans

BoC to trim bad loans with debt issue

huge, hidden bank bad loans

Bad loans of top 5 banks slightly down Bad loans of top 5 banks slightly down (Xinhua)

(Bad loans, according to the PBOC, amount to just which 2. 5 per cent of total bank assets now. )

At the end of last year, regulators ratcheted up the provisioning level to 130 per cent of bad loans;

A surge in bad loans

China gets new view of bad loans