To Evade And Solve The Bad Debts Of Domestic Banks

Bad loans and the aroused financial turbulence are a universal problem ,which has been under studying in developed countries years ago. Various measures have been taken to settle it . With the development of domestic economy and advancing wheel to World Trade Organization, confronted with the situation that bad loans of Chinese commercial banks are soaring in resent years, to avoid and solve the problem has become an essential task. Domestic huge bad loans are attributable to the comprehensive contradiction existing in National economy,and are due to three causes. They are,first,macro economic fluctuation,second,governmental interference and the risk tranference to bank owing to lag business management,and third,weak banking management and improper financial movement. The key to crack the nut includes deepening reformation of macro financial system and improving banking management.Anyway, this problem should be taken seriously by all communities. This paper, through analyzing causes of bad loans,try to make some exploration in this area. This paper is divided into three parts. Part One is about the present situation and causes of bad loans. Part two discusses some good ideas by reference of valuable experience of foreign banks. Part three puts forward some suggestions and counter-measures on settling the pro hi em.