The Study Of Disposal Of Bad Assets Of Commercial Banks In China In The Capital Market

Since the twenty 80th. financial crisis has broken out successfully in some countries and surburbs. Bad assets of banks have extensivly aroused the attention of international financial societies. Since we have posed the idea of disposal of bad assets of stated-owned commercial banks in 1995, we have brought the decreasing of bad assets into being in 2001. But bad assets still are more. Before, we always dispose of bad assets by perfecting banks or enterprises related with banks or government, but banks and enterprises and government and the capital market are an intergration. So when we dispose of bad assets we must develop and depend on the capital market.In the preface, I analyse the serious situation nowaday in bad assets of commercial banks in china and represent the purpose of this article.In the text:In the first chapter, I analyse the relative study of bad assets of commercial banks. I probe the door of disposal of bad assets of commercial banks through assaying international acts and our acts. Internationa1 acts are generalized by seven ways, in which market, especially the capital market, play the important role. There are "the mode of inner digestion" and "the mode of flow" in china, in which government play the important role. Though we have reduced bad assets, we must open our minds to innovate if we want to dispose of bad assets quickly. The usual thread to dispose of bad assets is "prevention from the increment while reducing the deposit. It is known from the international experience that we can promote efficiency and motivity of disposal of bad assets of commercial banks in the capital market, which will input the new mechanism to our commercial banks.In the second chapter, the capital market is good to reduce bad assets of commercial banks in china. I analyse the act of the capital market in avulsion and tackling, which is the main way used by commercial banks in china through AMC. What is important is price and capital in the phase of avulsion. Now we decide price on account, which has many drawbacks so price is irrational. Capital can't be get easily because of the faulty bond market. In the phase of tackling AMC must be able to quit in the capital market, which is important after debt-right into stock-right. There are many limits such as the quality of assets for the asset securitization to be used in china, so if we want to find many ways to dispose of bad assets, we must find the assemblage of price and risk, which can't be decided by person and must be selected by the pefect capital market. In the third chapter, the capital market is good to prevent from bad assets ofcommercial banks in china. Bad assets of commercial banks are related to commercial banks and enterprises and government and the structure of capital. So I analyse in this part from these ways. As commercial banks themselves is concerned, the capital market is good to settle the asymmetrical information that commercial banks face, and to improve the rule structure of stated-owned commercial banks, and to compete against commercial banks, by which commercial banks can improve their efficiency. As the structure of capital is concerned, the capital market is good to change the situation of the irrational structure of capital to lighten the burden of banks. As the relationship between bad assets of commercial banks and enterprises is concerned, the capital market can form a stimulative and restrictive mechanism in enterprises and play the selection role, which is good to dwindle the probability of bad assets of commercial banks. As the relationship between bad assets of commercial banks and government is concerned, the capital market is good to better the role of government in the financial market to eliminate the probability of bad assets of commercial banks. As economy growth is concerned, the capital market is good to form a new road for savings to change into investment, which can stimulate the growth of economy to prevent from bad assets.In the fourth chapter, I analyse the way of disposal of bad assets of...