Legitimate Mechanism To Solve None-Performing Loans And Improvement Suggestion

To avoid the asian financial storm in 1997 which caused great loss to the state economy and strengthen the competitiveness of our native financial organizations in the market under the WTO environment to the forgein banks, Chinese government hold the state financial meeting in November, which decided to reform the state-owned commercial bank. One important content of the decision is to take out non-performing loans from the bank so as to decrease its rate in the bank, and that will help the four state-owned commercial banks to come to the market to get financing and improve the capital structure.To achieve the goal aforesaid, China set up four Asset Management Corpoaration(AMC for short) called Xinda, Huarong, Great Wall, Orient to accept a great deal of non-performing loans. The main responsibilities of the four AMC are two aspects: one is to maximize the economical benefit of the case separately in the non-performing loans, the other is to accep the policy assignments from the government.Obviously, with the lack of legitimate provisions and experience in non-performing loans' disposal, we could not achieve the goal to maximize the economical benefit if we dispose by traditional mode, and the legal system is not fit for us to use the forgein advanced experience to dispose the non-perfoming loans for reference. Therefore, the author figures that we should use the forgein advanced experience for reference with the actual situation in China combined, analyze the single case disposal in non-performing loans seriously, modify and improve the relevant legitimate provisions in non-performing loans in time, so that we could choose a best way to slove the specific problem in non-performing loans by law.