The Governmental Behaviors In Controling Non-performing Banking Assets

The problems of Non-performing Assets in banks are not only relevant to the further reforms of banks, but also to the normal operation of economy and the healthy development of our society. Countries with mature market economics, as well as countries during economic transforming period, have the problems that huge Non-performing Assets in banks led to banks crisis. The tough situation of China's banking is caused by the inappropriate system and mechanism arrangements. So it depends on that China's governments keep on pushing further reform on the economy and society mechanism. As a result, unfolding the study to the government's function on decreasing Non-performing Assets has extremely important theoretical and practical values.This thesis has 6 chapters:Chapter1.Introduction. Briefly introducing the background and significance of topic chosen, summing up relevant domestic and abroad studies, defining the study range, methods and the structure, and summarizes the main innovation and the direction of further study.Charper2,the conception, situation of the Non-performing Assets in banks and their influence on economy. This chapter explains the conception of Non-performing Assets in banks and specifies the classifications of them. Thoroughly and systematically analyses the size, structure, distribution and changing trend of the Non-performing Assets in banks, and points out that this problem causes enormous negative effect on China's economy. It brings efficiency loss to the banking as well as hampers the application of the economic policies of our countries, leading to tremendous society costs.Chapter3,the cause of the Non-performing Assets in banks. This thesis analyses the reason of the formation of Non-performing Assets, describes the accumulating process of the Non-performing Assets and points out the main reason lies in the inappropriate economic system reform and the poor regulation power of government. Then from the angle of the old and the new Non-performing Assets, analyses the environmentalfactors leading to the formation of Non-performing Assets. That is the institutional and non-institutional factors.Chapter4, The necessity of solving the Non-performing Assets by government. First,it briefly defins the conception of fiscal institution, and summarizs the fiscal principle this thesis based on. Then this thesis generalizes the theoretical and practical development of fiscal policies and monetary policies.Chapter5,the international experience and reference on solving Non-performing Assets by government. This thesis aims at the formation and solving situation of the Non-performing Assets, summarizes the solving practice of the developed countries like the United States, Japan and the transforming countries like Hungary, Poland, and points out the experiences and lectures that can be learnt.Chapter6, countermeasures of decreasing Non-performing Assets ruled by government. This thesis concentrates on discussing several system and mechanism problems leading to the Non-performing Assets which need to be pushed by government. Then putting forward corresponding fiscal policies applied now and the near future.