The Treatment Research To The Non-Performance Loans In China's Bank

Along with taking part in the WTO, China's bank system will contact with international financial supervision and management system and confront with the challenge of the foreign-capital banks at the same time. But the large quantity of non-performing loans (NPL) precipitated in China's state-owned banks appeared in the process of the reformation to the traditional economic system, greatly pull down the earning ability, security and fluidity of the bank: asset as well as enlarge the financial risk contained in the national economy in our country. It accordingly became an important factor that perplexed banks in managements and activities and obstructed the development of national economy in recent years. Moreover, because the NPL of the banks and the liabilities of the state-owned enterprises are the two aspects of one thing, the existence of the large quantity of NPL of the banks not only seriously affected the step of the reform, but also obstructed the marketization progress of state-owned enterprises at the same time. Therefore, the problems which China's banks system should solve urgently are how to reduce the amount of the NPL of the banks existed and how to prevent effectively.In this thesis, the author firstly analyzes present conditions of banks' NPL and the questions existed in the process of treatment. Then, by construing the advanced experiences and the operate techniques to the NPL, that developed countries such as the USA, Japan, Korean and the Eastern Europe countries such as Hungary and Poland which are reforming their national economy owned, relating the actual conditions of our country, the author finally draw his statements: the unreasonable economy system and the shortcomings in the relation between the banks and the state-owned enterprises which ultimately cause the NPL of the bank come into being is the key to solve China's bank NPL successfully. However, incapable of preventing the amount accretion, all kinds of operations and policies which China's government adopted to solve the problem of the bank NPL can only reduce the exist amount on the surface. To completely solve the problem of the bank NPL in China, the government must reform the economy system as well as innovate the operating technique, simultaneously. The strategy, which is layered treatment and varied techniques existing combined, is the primary way to completely solve the problem of China's bank NPL.