The Study Of China's State-owned Commercial Bank's Defective Assets

The huge amount of banks' defective assets is one of the most important causes to the financial crisis in the world. Though China has not been involved in the crisis, the amount of China's state-owned commercial banks' defective assets is large as well, which are the main banks in China's bank system. It increased China's financial risk and formed a potential threat to China's national economy and finance development. In order to solve this problem, we use the empirical analysis method, the historical analysis method, the contrastive and inductive analysis method to study the issue of China's state-owned commercial banks' defective assets, which includes the study of the current situation and the cause of the banks' defective assets and the ways to resolve it.There are three chapters in this thesis. In the first chapter, we firstly analyses the concept and the definition of defective assets in commercial bank, then analyses the current situation of China's state-owned commercial banks' defective assets, which includes the amount and the effect of the banks' defective assets, pointing out the severity of this problem. The second chapter analyses the cause of the banks' defective assets based on the research of the course of defective assets forming, pointing out the defects of China's market economy system is the primary reason for it. In the third chapter, we firstly analyses the necessity and urgency to solve the problem of banks' defective assets, then researches on the solution of the problem, based on the experience conclusion of the other countries. In order to solve the problem, we must work in two ways: (1) taking some measures to resolve the inventory of banks' defective assets. (2) reforming and improving the economy system to prevent the growth of banks' defective assets.