| dc.description.abstract | Due to the lack of the recovery rate data of NPL in Taiwan, it is difficult to build the NPL valuation model and the credit risk model. Therefore, the main purpose of this research is to analyze and collect the recovery rate data of NPL in Taiwan.
In the first place, we will see how RTC and KAMCO deal with NPLs in their countries, and then particularly introduce three main processing programs in Taiwan: court auction, consigning auction, and dealings with AMC. Secondly, we will discuss how to value NPL and pay more attention to the process of due diligence and collateral appraisal. The final chapter is a case study. The source comes from the asset appraisal reports, provided by VerTrust Property Management & Consulting Company, for the AMCs in 2002. In this chapter, we calculate the recovery rate of NPL in Taiwan last year and analyze whether the characteristics of collateral and the recovery rate of NPL are statistically significant.
The empirical result reveals that the characteristics of collateral, which include geographical distribution (in North, Central, South, or East of Taiwan), property type (developable land and useless land), urban zoning (as a proxy of whether the property is near the downtown area), and Registration Priority (whether the creditor is in the first priority), have statistical significance with the recovery rate, but other characteristics of property type (residence and factory) do not show statistical significance with the recovery rate. | en_US |