... banking sector may potentially bias the result upwards. Practical implications In an environment of heavy government influence over the lending process, a large proportion of loans extended by Chinese banks over the years have gone bad. Policymakers should prevent the flow of new non‐performing loans...

...Wenjie Du Purpose Since the reform and opening‐up policy, the long‐term problem of loans became more and more serious when China's economy maintained rapid growth. The purpose of this paper is to explore the profound causes of the medium‐ and long‐term problem of loans and the relationship between...

... game to deduce the loan characteristics of banks, vector and void coordinates to analyze the behavior choices of banks under capital supervision, sets up an index to describe the risk preference of banks, and analyzes the process with Chinese data empirically. Findings This paper finds big banks...