Are China's Financial Reforms Leaving the Poor Behind - Harvard ...

Table 3Share of Outstanding Loans that are Non-performing, 1994 and 19971994 1997 AnnualN OVER INACT DEAD Total OVER INACT DEAD Total %∆Full sample 145 0.09 0.07 0.01 0.17 0.13 0.08 0.02 0.24 0.15ProvincesZhejiang 39 0.08 0.03 0.01 0.12 0.13 0.06 0.01 0.20 0.18Jiangsu 47 0.07 0.12 0.03 0.21 0.09 0.10 0.05 0.25 0.12Sichuan* 23 0.16 0.08 0.00 0.25 0.19 0.10 0.03 0.32 0.07Shanxi* 36 0.16 0.12 0.03 0.30 0.21 0.15 0.04 0.40 0.14IncomequartilesI 31 0.06 0.05 0.01 0.13 0.15 0.08 0.02 0.25 0.32II 34 0.11 0.07 0.01 0.19 0.08 0.06 0.03 0.16 -0.07III 34 0.14 0.09 0.02 0.25 0.16 0.12 0.05 0.32 0.08IV 33 0.15 0.11 0.05 0.32 0.23 0.18 0.03 0.44 0.14Bank typeABC 53 0.08 0.09 0.01 0.17 0.08 0.09 0.03 0.20 0.00RCC 92 0.10 0.06 0.02 0.17 0.17 0.08 0.02 0.26 0.23Borrowertype**:TVEs 36 0.15 0.06 0.02 0.23 0.15 0.21 0.03 0.38Households 51 0.18 0.13 0.01 0.32 0.15 0.15 0.03 0.33Note: All means are weighted by the amount of outstanding loans.Definitions: OVER=overdue loans, INACT=inactive loans (overdue more than 2 years),DEAD=loans with no expectation of repayment because of the following reasons: a) theborrower has died or cannot be located; b) the borrower has gone bankrupt; or c) the loanis more than three years overdue.*In 1998, Sichuan and Shanxi overdue loans were 0.28 and 0.48 of outstanding loans.**For Sichuan and Shanxi only.38