Banking is a high-risk industry since it responsible for managing public assets and investing them in securities or loans. As result, assessing commercial bank performance critical understanding their health efficiency. A financial approach used to assess credit risk, liquidity, adequacy accordance the requirements of Financial Service Authority (OJK). This research aims determine impact Capita...

Chinese banks suffer from serious financial fragility manifested by high proportions of non-performing loans and low capital-adequacy ratios. A key policy introduced recently by the Chinese government to reduce financial risks is the establishment of four asset management companies (AMCs) for dealing with bad loans. Drawing on the experiences of the Resolution Trust Corporation in the United St...

In this paper we argue that the delay in the government bailout of the financial sector played a key role in Japan’s slowdown during the 1990s and early 2000s. We construct a dynamic general equilibrium model in which the government provides deposit insurance to the financial sector. The model has the following property: the existence of non-performing loans, combined with a delay in the govern...