A Study On Treating Mode Of Non-performing Assets Of Commercial Bank In China

The necessity of dealing with the non-performing assets of commercial banks in China (CBC for short) is introduced in this paper, and the ways through which the non-performing assets will be treated are discussed and compared. The main conclusion is that the best way to treat the non-performing assets of CBC is to sale them by issuing securities. Finally, the author gives some details in choosing the right process of asset securitization to treat the non-performing assets of CBC. The contents can be concluded as follows:In the first part, the "Structure-Yield" model of assets is conducted and established, by which the relationship between the assets structure and assets yield can be analyzed easily and effectively. The author points out that because of internal and external motivation, CBC must treat their non-performing assets to be more competitive.Then in the second part, the models by which CBC treat their non-performing assets are analyzed by the "Structure-Yield" model correspondingly. According to the author's opinion, the most feasible mode is securitization,With Asset Management Corporation as an agent, the securitization process mode can be established by four steps, setting up assets-pool, special purpose vehicle, developing the security products, upgrading and grading credit.Finally, the legislative and economic system restricts to the asset securitization process of CBC are analyzed. The systematic restricts are mainly from legislative system, accounting system and tax system. Based on the analyses, the author puts out some suggestions to deal with the problems caused by the systematical restricts.