An Optimal Time Path Model of Eliminating Bad Loans
The author developed a continuous optimal control model showing the optimal time path of issuing special treasury bills to the state-owned banks in the size of the bad loans.These debts should later be paid by the government with its dividend earnings as a shareholder of the banks.The government can achieve threefold effect from this process.First,it can eliminate the bad loans rather than only cover them.Second,it can soak up liquidity and refrain the banks from making too much loans.Third,making banks take the responsibility of bad loans by themselves at present will root out the moral-hazard behaviors of the banks and make them perform prudently in the future.
Bad loans Optimal control Special treasury bills Time path
WANG Guohua WANG Xiao-xia
Institute of National Defense Economics and Management,Central University of Finance and Economics,P.R.China,100081
国际会议
2007 International Conference on Management Science and Engineering(2007管理科学与工程国际学术会议)
河南焦作
英文
1757-1763
2007-08-20（万方平台首次上网日期，不代表论文的发表时间）