Study On Prevention And Disposal Of Bad Loans In Commercial Banks

Although bad loan problems have currently aroused concern of the whole society,their study is still restricted to the field of stated owned commercial banks.The study on joint-stock banks,especially city commercial banks,on bad loan disposals is very rare.In recent years,the problems of bad assets in our joint-stock commercial banks have become increasingly protruding,and the scales enormous.If not handled and solved promptly,the difficulty for solving the prombles will further incresse,and the extent of risks for our banking system more severe,thus further affecting the solidity and efficiency of financial system ,and increasing social cost.On this basis,this article stresses on the discussion how the joint-stock banks,and then Shenzhen City Commercial Bank,deal with bad assets.First,the article sees about the classification of loans,describing the five processes which arise bad loans in normal loan activities.and analyze the causes for our commercial bank bad assets.An then,using comparative analysis methods,the article gives an analysis and comprehensive judgments on the experiences and lessons of how foreign countries handle with bad assets,and the ways and methods of disposing bad assets brought forward by economists in our country,and by using"Nash Equilibrium"theory and model,analyzes the "prisoner morass"phenomenon in our collecting loans,and finds out the sticking piont of the low effectiveness of our bad loan collecting.Further,the article proposes schemes and approaches of disposing bad assets for Chinese commercial banks.In particular,the article proposes that joint-stock banks should set up asset managing company,and by the operation and management of asset mangaging company,and exerting the conversion of obligatory rights and liabilities to achieve the purpose of disposing bad assets in commercial banks.The article also discusses in depth about conversion of bad assets to negotiable securities,conversion of debts into shares,internal debt disposal(including quantity analysis of bad debt reserves),and bank mergers,etc.and put forward unigue and valuable opinions.At last,the article investigates the successful cases of bad loans disposals by Shenzhen City Commercial Bank,and probes new methods of bad loan disposals under the present systems and conditions.Therefore,the suggestions and approaches the article brought forward on bad loan disposal are not only of macro systematic and politic,but also of micro-operational.It is of highly politic and innovative,as well as practical and operational guidance.