The Study On Bad Financial Creditor's Right Of Commercial Banks In China

As a high-liability and high-risk industry, the problem of bad financial creditor's right in commercial banks revolves around the banking all the time. In recent years, it becomes a global problem and how to manage it becomes the common subject facing the global banking because of the rapid development in financial innovation, the turbulent international economic and political situation and uninterrupted financial globalization.The theory of risk management, which is maturing day by day in western countries, provides the study of this problem with theoretical basis. The theory of financial frailty, which originated from the research results made by those researchers such as H. Minsky and J. A. Kregel, gives a theoretical explanation to bad financial creditor's right and the emergence of financial crisis. In the practice of risk management in western commercial banks, a set of perfect theory concerning credit risk management has formed such as "5C" analytic approach, z grading model, KMV model and on-insurance value approach. In recent years, many scholars achieve a lot of results in the study on the management of bad financial creditor's right of commercial banks in China. For example, in the aspect of forming mechanism of bad financial creditor's right of commercial banks, some scholars put forward the causes of bad creditor's right regarding economic structure, enterprise, bank, system and law. Some scholars make an explanation to the formation of bad creditor's right from the point of institutional economics. They believe that bad creditor's right of national banks in China, in fact, is the embody of low efficiency in the institution for financial resource disposal. In the respect of measures to manage bad creditor's right of commercial banks, a number of suggestions are put forward including: With regard to macro-measure, such thoughts are raised as replacing bad creditor's right for the policy by issuing national bond, giving full play of asset managing company, entrusting bad creditor's right of banks, capitalizing banks again, perfecting credit increment and utilizing "market negotiation" to solve bad creditor's right of bank; with regard to micro-measure, such approaches are put forward as introducing foreign capital to handle bad creditor's right, putting asset into the stock exchange, transferring debt into stock, inviting and entering bidding for bad loans, auction, sale by agreement and sale by competitive price. Some solutions full ofcreativity are raised in some researching results such as designing "bond discount mechanism" and establishing "special investment fund for transforming state enterprises".But regarding research approaches and research thoughts, there exist the following problems in most of the results: Firstly, a number of thesises focus on the management of bad financial creditor's right from asset managing companies rather than the settlement of bad loans inside commercial banks. Secondly, on the whole, the researches in this field lack complete theoretical system and strict logical thoughts. Several thesises are only regarded as overall introductions on foreign experience or conclusions and reviews on practicing the management of bad financial creditor's right inside the country at present. Thirdly, some thesises start with idea on reality of china at present, only concerning bad loans without regard to the penetrating problems in social life of our country. The depth of theory and innovations of thoughts aren't worth mentioning. In view of the problems mentioned above, this thesis emphasizes on the management of bad assets inside commercial banks in China in the field of managing bad financial assets, and attempts to establish a set of theoretical and logical system based on international experience, which is suitable for Chinese conditions, by means of omnibearing and systematic and monographic study on the subject - the management of bad financial creditor's right of commercial banks in China.It is an important way to go deep into the study on the problems of bad financial...