The Ways To Deal With The Non-performing-Loans Of Chinese State-owned Commercial Bank

This paper analyze the status and reasons to form the non-performing loans in the Chinese state-owned commercial bank. The non-performing loans in China are different with West countries and bigger than authoritative information. They are highly eatimated and now more worse than before.The major reason for the non-perfoming loans are the political loans which starting from planning economic to marketing economic. In recent years the rising reasons are the blusterous loan scopes and banking management invalidation. Now they are dangerous to the Chinese finance. The Korea and Japanese banks find their own ways to deal with the bad loans and the Chinese bank can learn the experiences from their methods. Chinese state-owned bank have two ways to reduce the non-performing loans. Non-performing-loan securitiza-tion is an attractive option for Chinese bank to deal with its large amount of impaired loans. This paper outlines the requirements and conditions for a successful non-performing-loan securitization, discussing the procedures and questions and methods surrounding the securitization of non-perfoming-loan. Capital management company plays an important roles in the performing the bad loans. This paper outlines the methods of the asset recombing and analyzes the possibility of the foreign capital entering into the performing bad loans. In last the paper summarize the state-owned commercial bank should resolve their old management and make"good bank" going into market and "bad bank" specially dealing with bad loans. They also resolve the ways to reduce the impaired loans. They could set up venture capital management department and conform to market rule and enhance the employee's education to quicken performing bad loans.