An empirical analysis of cash payback capacity in nonperforming asset pool

The factors were analysed which affects the cash payback capacity of nonperforming asset pool. Correlation was analysed to the factors and there exists multicollinearity. All Kaiser Meyer Olkin measure (KMO measure) exceeded 0.5. It showed that the sample was adequate and suitable for principal component analysis. The contribution proportion of cumulative variance decided the principal components. The empirical results show housing price index is the the first principal component. It decreases 1 percent, then the payback capacity score drops 2.14% correspondingly. The range is larger than that of the nonmain elements. A linear equation evaluates cash payback capacity of nonperforming asset pool. The principal component analysis provides an effective means to weigh the safety bonds scale and a reference to investors to invest in interbank bond market.