The Study On Non-performing Asset Of China's Banking Industry

In the past 20 years, China's national power has grown fast and the people's living standard has been improved dramatically. As the core of national economics, the financial system reform has made marketable progress during the change to market economy. However, the financial system reform lags a lot compared to the social, political and economic reform, there are lots of aspects to be improved to the state-owned commercial banks especially the organizing structure, operational mechanism and the behavior method. Among all the problems facing the Chinese bank industry, the non performing asset is the most emergent one to be resolved in the future.To settle the non-performing asset, Chinese government and the China's banking regulatory committee (CBRC) have taken lots of measures, among which the most weighty one is setting up the asset management companies to peel off the non performing asset from the commercial banks. However, Chinese banking industry still gives birth to the new non-performing asset because the enterprise system and operational mechanism hasn't an intrinsic changed. According to the statistics of the CBRC, the main commercial banks have 1717.6 billion RMB non-performing asset, while according to the calculation of the macro control's influence on the financial industry, the optimistic, conservative and pessimistic estimations are that there are 200 billion, 250 billion and 350 billion respectively new non performing asset annually. Therefore, I think it's indispensable to make a study on the non-performing asset of Chinese bank industry. Due to my limited study level, I can just make a qualitative analysis on this subject, and make some superficial advices through using foreign countries' experience for reference.My thesis includes 5 chapters:The first chapter explains the concept and class of non-performing asset, anddescribes the situation about the non-performing asset of Chinese bank industry, andthen analyzes the various influences resulting from the non-performing asset.The second chapter analyzes the cause of forming the non-performing asset, including3 categories: The first is caused by the political and systematic factor. The second isenterprise management factor. The last is bank operation factor.The third chapter introduces the disposition modes and then discusses the feasibilityin China.The fourth chapter discusses the situation and disposition method in USA, Japan andKorea, and sum up some useful experience.The fifth chapter gives my opinions and advice on resolving the non-performing assetof Chinese bank industry.