Study On How To Promote The Efficiency Of Disposing Non-performing Asset In National Commercial Bank

With the strengthening of finance's role in the economic, the running efficiency and its steadiness can affect the whole macroeconomic seriously. The problem of non-performing asset has got more attention allover the world especially since the finance crisis in South-east Asia. As far as the situation in China is concerned, the focus on bank non-performing asset and finance risk started with the reforming to commercial banks in 1994. The non-performing asset became public step by step, and the number become more. The ration of non-performing asset in commercial banks has come to 25%, according to the data of central bank in January 1998, from which we can see the seriousness of the problem. The problem of non-performing asset is key point which influences the system reforming, increase of finance efficiency and facing the challenge of foreign competitors after entry to WTO. Whether on the model or concrete methods of disposing the non-performing assets, there is rich successful experience to introduce. There are also different researches and argument in related theory fields. Our government built the four assets management corporation as the professional institution of disposing the non-performing assets in commercial banks. Several departments all have taken measures to introduce international experience on dealing with the non-performing asset problem, and made obvious performance to certain degree. Seeing from the situation of our commercial banks, however, the problem hasn't been solved efficiently, as well as the appearing of new bad loan and related problems. Facing the entry of foreign finance institution in 2006, the problem has come to its deadline to deal with. We must standing on the background of system contradict and macroeconomic environment, according to the special situation of domestic finance industry, take accordingly measures in several fields.Overall, the writer hold the opinions as follows: The key hamper of the efficiency of disposing non-performing asset is not the scarce of advanced technology, but the scarce of system and environment to solve the problem. The former results in the scarce of encouraging the institutions, which dispose the bad asset. While the latter restricts the use of all kinds of international experiences as well as the creation on disposing non-performing asset. So it's important to make comparing analysis between different countries with different background, and get more efficient conclusions to solve the problem. The first part of the article is the preparation. Here we introduce the appearance and situation on the problem of non-performing assets, as well as the necessity to study the problem. The second part is the general introduction of non-performing asset, firstly explain the definition of non-performing assets, and then list several common measures used in the course of disposing the non-performing assets. The third parts give the explanation and analysis of main international experiences during the course of disposing non-performing assets in the USA and Japan. The two countries had different background of non-performing assets' appearance. Although Japan took some same measures as that of America to solve the problem, the results were different, as it scared proper system and environment. From the above, we can get the conclusion that solve the problem of non-performing assets efficiently need certain efforts, including the timely measures of government, scientific supervising system on the asset quality in commercial banks, and the healthy financial market. The fourth part explain the producing and disposing of non-performing asset in Chinese banks. It starts with the quantity and characteristic of non-performing asset in Chinese banks, and then lists the course and situation of the work to solve the problem. From this part we can see there still exists difficulty during the work to reducing the non-performing assets. The last part lists the main difficulty during the work and gives some suggestion on promoting the work of disposing non-p...