| The research on the management of non-performing assets and financial assets is of great imporance and realistic meaning for the comparative analysis of operational systems among financial asset management corporations,and for bettering our financial asset management corporations , perfecting operational systems,and also for the preventing and dissolution of financial crises. With the financial globalization, rapid flowing of international capital, the innovation and the deepening reform of international financial field,and the transformation of state system,great amounts of non-performing assets occured in banks not only in developed and developing countries but also in countries facing transformation since 1980s.Therefore,the dissolution of great amounts of non-performing assets in banks has become a new task to both countries and international financial community.Although China was not directly swept into the financial crisis, great amounts of non-performing assets were also accumulated in China's banking system,which not only means huge financial risk but an impediment to the marketization process of state-owned banks and a hindrance to the deepening reform.Financial asstes management corporations emerged with the research on the disposal of non-performing assets conducted by many countries. This article,at the begining , conducted comparative research on the operational systems of financial asstes management corporations with different types in many countries by analysing the formation of the non-performing assets of banks and the management of financial assets in many countries. At present ,there are lots of researches on the financial asstes management corporations in developed countries, developing countries, and in countries facing transformation, but comparative research on the operational systems of financial asstes management corporations with different types in many countries are rarely seen,especially the research on China's operational systems and the objects of financial asstes management corporations based on comprehensive and comparative research.This article fill in the blanks in this field to some extent and due to this reason,I felt encouraged to do this research. The reasons for the formation of the non-performing assets in banks are very complex,this article use the unsymmetrical information theory ,the public interest theory to give theoretical analyses on the the formation of the non-performing assets in banks and expound the reasons for the the formation of the non-performing assets in banks from the perspective of vulnerability of the supervision on banks, economic system, the transformation of our economy.This article give suggestions on the measures ,modles and approaches to dispose non-performing assets and to prevent and resolving financial crisis proceeding from the innovation of the financial theory.The means for the disposal of non-performing assets vary due to different political system and economic environment.Different approaches are used owing to different reasons and backgrounds of the formation of non-performing assets ,thus guaranteeing the social security and the purchasing of creditors' rights.Countries also use legislative support,policy support and the innovation of system to dispose of the non-performingassets in banks, instead of one single way said above. Generally to say ,there is an institution to dispose of the non-performing assets in banks among the modles of the disposal of the non-performing assets in banks . Their names may vary,their tactics may vary ,but basically the institution is financial asset management corporation(or a special insititution which is similiar with financial asset management corporation).Countries' love for financial asset management corporation is not accidental and simple mimicking of other country's modle.This modle is adapted to the objective situation of most countries' financial development.On the other hand, the formation of non-performing assets and the ways to dispose of non-performing assets are also different as a result of diffenrent historical times and diffenrent social and economic background. This article use value analysis and comparison to conduct a comprehensive and complete comparative research on the management of non-performing assets in banks in many countries and the operational system of financial asset management corporations in developed countries, developing countries, and countries facing transformation as well. To deal with this question,a government might take the following measures:1,to close and to liquidize the banks, 2,to relax supervision on bank, 3,to reorganize the bank.The closure and liquidition are the basic policy with the participation of the government,but they are only the last straw.To relax supervision is the temporary policy by the government, and could only be used in such situation in which there is adequate supervision.Reorganizing the banks is the basic way to resolve the non-performing assets in banks.Most governments might either relocate the banking capital or provide preferential policy to enhance the mobility of banking assets,public units might provide financial support.Generally to say,successful banking reorganization is often conducted with the participation of the government.The most difficult problemis that who will pay for the loses of non-performing assets.Usually,the market and the government will bear the price.The general rule in the West is,the market bear the price.The basic sequence of the bears is:the borrower,the shareholder of the bank,the government,the depositor and the employee(under the condition of the neglection and liqudition).In the countries,where the banking systems are influenced by the political interest,especially in the developing countries,the resolvement of banking problems is not only a technological problem but also a political problem,because government will bear considerable loses.Although the ways of maket share are tried in almost all kinds of countries, the resolvement of banks,whose asset problem is serious and the situation is harsh,at most,is participated by government to reorganize the bank and to dispose of the non-performing assets.Having a look at the policies on this,one can see that to organize an institution,which has the characteristic of the financial asset management corporation to dispose of the non-performing assets is a common way.Although the economic bases, development degree of market,the type of non-performing assets ,the scale and the distribution, and the operational system in the disposal of non-performing assets of financial asset management corporation are different, and the measures taken is also different due to the time and the assets,the background of the formation of financial asset management corporations is aimed at resolving the systematic financial crisis,and the corporations is to resolve the non-performing assets. In the terms of the operational experiences of the financial asset management corporations, the financial asset management corporations are all founded when the non-performing assets problem is serious. The aim is to take effective measures to deal with non-performing assets, to prevent the lasting deterioratioin of asset quality,and to deal with the asset at a proper price,to maximize the capital purchasing, to minimize the cost of disposal.To thisaim,many ownership forms could be taken:public ownership,that is, government-founded centred financial asset management corporation;private ownership,that is to say, a bank-founded financial asset management corporation with distributed power. Generally, if choose the former, the number is one, the later, the number is some. The way the financial asset management corporation'aquisition of non-performing assets is different, and it is difficult to calculate the price properly. During the financial crisis, there is a lacking of indicator of market price, thus the market might strip off excessive asset to the financial asset management corporation, or buy in the non-performing assets at a price higher than the market price. If the financial asset management corporation buy in the non-performing assets at a price higher than the market price, in fact, the corporation is to increase bank asset, and to salvage the bank, therefore, the corporation should make out a proper price. The financial asset management corporation is built for the mangement of non-performing assets, and will not be a despoitory for long-term non-performing assets.Therefore,when the financial asset management corporation is founded,there will usually be an exsistence period,but on this spot,according to the features of domestic financial system and non-performing assets situation, and economic stucture, some countries see the the financial asset management corporation as a permanent institution in the financial system which will play its role.After calculating the non-performing assets purchased, the tactics to deal with the non-performing assets of financial asset management corporation is different.Generally to say, there are 5 types:1, to sell out 2, asset securitization,3,debt restrcture,4,debt-equity swap,5,use foreign investment to dispose of the non-performing assets.To secure the success of the financial asset management corporation, favorable external conditions and the good operational system of the financial asset management corporation is indispensible.The external conditions includes law, politics andeconomic environment,and good operational system includes the operational aim,the impelling system,management structure and tactics. On the basis of learning form the experience of international non-performing assets management, this article regard the formation of non-performing assets is the response of the deep contradiction in national economy, which includes, the transformation of economy-the systematic reason for the formation of non-performing assets in banks,the operation with high debt and low productivity of state-owned firms-the direct reason for the increasing of non-performing assets, the bad social credit system, the evasion of debt with wilfulness, the backword form and corruption of the financial system-which also led to the inferior asset quality of banking.It is not impossible to solve the high proprotional non-performing assets by way of the banking system,but it will take a long time.But,the changing environment of politics and economy required us to quicken the reform of state-owned banking system. By the end of 2006, foreign corporations will be allowed to enter into all our market, thus will increasing the external pressure on competition.According to the problem of non-performing assets, China has taken positive measures to carry out reform, especially after the breakout of the Asian financial crisis in 1997, and we saw great improvement in the reform. To prevent and resolve the financial crisis might caused by the great amount of non-performing assets in commercial banks, China have founded China Xinda asset management corporation and China Great Wall asset management corporation, China Huarong asset management corporation and China oriental asset management corporation by learning from the experiences of the foreign government during April, 1999 to October,1999, seperately .The four corporations were founded to purchase, manage and dispose of the non-performing assets stripped from China Construction Bank, ChinaAgricultural Bank, China Commerce and Business Bank and China Bank. Five years of practice showed that financial assets management corporations have gained exceptional success. At first, they bettered the assets quality and financial affairs of state-owned banks. After the seperation, the proportion of bad loans of state-owned banks have lowered by nearly 10 per cent.Secondly, they eased the financial load of state-owned corporations,and promoted the reform of state-owned corporations.Through the asset reorganization and corporational reorganization,many corporations are regaining vitality.On March,2004,the Financial Department issued the 《The Notice On the Foundation of Asset Mangement Corporation Asset Recovery Aim Assessment Responsibility System》,deciding to make out a responsibility system of aim assessment .With the implementation of the responsibility system, relative measures were worked out, enlarging the market space of operation of asset management corporation, allowing asset management corporations to optimize the market resources according to the market rules. With the completion of the asset management, asset management corporations will go to the commercialization At present, the development of asset management corporations are at a crucial time. This article analyse the external problems arising from the process of corporational operation, such as lawful environment, governmental management, local intervention, under-developed capitalism market, and internal administration problems such as unclear operational aim, imperfect encouraging system,limited disposal means,limited disposal power,human resoures,etc.The treatment issue of financial asset management corporations could only be resolved by systematic reform step by step.According to the timetable set by relavent department on the treatment of the non-performing assets of financial asset management corporations,this article put forward the reformation measures and the implementation moves.From now on to 2006,during the transition period,financial asset...
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