Study On Non-performing Assets Of The Chinese Commercial Banks

Firstly, it introduces the standard of assets quality of the Commercial Banks and the methods of classifying the assets of the Commercial Banks. And then it gives the definition of NPAs. Secondly, it shows the causes, state and hazard of the Chinese Commercial Banks and tells us that it is the most important task for the Chinese Commercial Banks to deal with the NPAs. To master the deep meaning of NPAs of the Chinese Commercial Banks, it gives the economic explains of NPAs. Thirdly, it compares the methods of dealing with NPAs between the US and Japan and draws out some useful experiences for us, especially we can learn form Japan dealing with NPAs through Debt-Equity Swaps. After analysing lots of cases, it shows the special methods of treatment to NPAs of the Chinese Commercial Banks. These methods can be put into two groups, one group is called Inner Treatment Methods including loans reclaimed by legislation, writing-off bad loans and co-operation with the Government. The other is called Outer Treatment Methods including debt-equity swaps, selling out NPAs, asset securization, utilization of foreign capitals, debts restructuring and equity restructuring. In the end, it presents other proper methods of treatment to NPAs of the Chinese Commercial Banks such as co-operation among the enterprises, the Commercial Banks, the AMCs and the governments, mechanism innovation and the necessity and possibility of transforming the AMCs into the investment banks.