Study On The Restructuring Models Of Non-performing Assets Of Assets Management Company In China

The issue of non-performing assets of commercial banks is a universal phenomenon with international presence. International practice shows, NPA could bring financial crisis if it were not resolved promptly. Non-performing assets have maintained a very high proportion in Chinese banks. After Asian financial crisis, The State Council sized up the current situation and made decision in 1999 to establish four asset-management companies, which acquire, administrate and dispose the non-performing loan up to 1,393,900 million RMB from four state-run commercial banks and State Development Bank. Successful to rearrange non-performing assets or not, directly concerns the success of transformation of the operating mechanism of state-owned enterprise, the dissolving operating risk of commercial banks and regaining maximum of creditor's rights. So it has very important meanings to the successful operation of AMC of China and it is the problem need to solve urgently at present, that how to combine the national conditions of our country on the basis of the successful experience in the world for reference, and on the basis of analyzing the non-performing assets of AMC, sum up and summarize the restructuring theory of non-performing assets, and analyze and appraise the restructuring mode of non-performing assets. This paper takes financial non-performing assets of AMC of China as the research object, regards successful experience of restructuring of non-performing assets of foreign countries as guide, sums up the theoretical frame of restructuring of non-performing assets, which includes theoretical foundation and reason theory of restructuring of non-performing assets, and analyze and summarizes the theory of restructuring of non-performing assets of our country briefly. According to the experience of dealing with non-performing assets from U.S.A. and other countries, the bulk sale is the most effective method to clear up the asset reserve, including sell at discount physical assets and assets of creditor's rights, etc, paying the debts in accordance with the law. In addition, asset-backed securities sell individually and call for bid, and transformation from creditor's rights to stock right, etc applies extensively. People can also find out that the restructuring of non-performing assets needs market environment, legislation environment, and social environment at the same time. The origin cause of formation of non-performing assets of AMC is complex, debtor's credit of our country is bad, and there are many fiduciary loan verses few physical assets. Compared with non-performing assets of other countries, the quality of the assets is poorer, and it is more difficult to rearrange. Meanwhile, the external environment to rearrange non-performing assets is very bad. The capital market is undeveloped, legislation system is imperfect, credit and market are disorder, enterprise avoid debt maliciously one by one, and it is phenomenon relatively general for local government to protect its own profit. All these strengthen the difficulty to rearrange non-performing assets. From the operation of Chinese AMC in these two years, certain effects have made. First, restructuring income has reached the relatively high level. Second, financial risks have been dissolved to a certain extent. Third, it promoted the reform and development of state-owned enterprise. However, a great deal of problems exist in restructuring of non-performing assets, for example, efficiency remains to improve, the measure for restructuring is comparative simple, and progress of debt-to-equity swap of policy is slow, etc. The analysis to the mode of non-performing assets of our country shows, we can't affirm which kind of restructuring modes is optimum, because different restructuring modes apply different scope, have different purposes, need different external environment, and will produce different results. The AMC of our country should take the corresponding mode according to the concrete conditions during the restructuring of non-performing assets. Besides, the country should create the good environment so that the restructuring of non-performing assets of the AMC can go on smoothly.