The Analysis On Treatments Of Non-Performing Assets Pattern In State-owned Commercial Bank

Our country's finance industry will totally open to the world at 2006,and it will merge into the global financial system at larger scale. With the rush of banks invested by foreigners, our state-owned commercial banks will have to face fierce competition and challenges which never occur.But in the course to connect with international finance industry, our state-owned commercial banks have many serious non-performing loans problems. This problem seriously hampered the development of our country's financial system and macro economy.To solve the problem of non-performing loans, our country has established four financial assets management corporations named XinDa, Huarong, DongFang, and ChangCheng, which accepted 1,400 billion Yuan on-performing loans from four state-owned commercial banks in 1999. In the practice of eliminating non-performing loans, although we have make some progress, but the result is not so good. Till the end of March 2004, the non-performing loans of our four large state-owned commercial banks is nearly up to 2,000 billion Yuan and the ration of Non-performing assets is also up to 21.4%. So to strengthen the ability to deal with the non-performing loans is only one side to solve the problems, but to eliminate the system which causes non-performing loans to increase and to prevent the rise of non-performing loans is the key to dismantle the puzzle.This essay focuses on the situation, damage and reasons of the four state-owned commercial banks's non-performing loans. By learning from the experiences and lessons of foreign countries in dealing with non-performing loans and appraising the current mold of our state-owned commercial banks, I make some policies and advicesfor our countries to solve the problems of non-performing loans.