The Analysis On Treatments Of Non-performing Assets Pattern In Stated-owned Commercial Banks

The non-performing assets (NPA) of Chinese banks have already been striking problems confront Chinese economic development. Since the existing of bad assets may threaten the macroeconomic stabilization and obstructing the financial system reform, further study and effective solution to deal with the bad assets are now imperative. In 1999, four financial asset management companies (AMCs), named Xinda, Huarong, the Great-wall and Orient, were established to taker over, administrate and dispose the bad assets from the four State-owned commercial banks and the key points are to adopt effective measures to resolve the NPA which have not been peeled off in banking system, to eliminate the institutional sources . Yet no substantiality progress has been made to dispose the bad assets of Chinese banking system, which make it rather an important, at present new thoughts and methods are urgent in handling the NPA.The NPA in bank systems are not merely arising in China but a worldwide problem. A large number of banks encountered business failure because of the bad assets since 1980s, Hence it is of great significance to study and use international successful experience of handling bad assets for reference when we try to deal with our own problems. Given the difference of countries situation and bank credit cultures, the modes and methods to disposing the NPA of banks should also be different. This thesis investigates the backgrounds and causes of the NPA in Chinese commercial banks and then analyses the impact of different disposition methods on each other. Furthermore, this paper combines the characteristic situation in resolving the NPA of State-owned commercial banks with the international successful disposition experiences, and ultimately acquires solution to dispose non-performing assets coincident with Chinese facts.