Research On Non-performing Assets Issues Of Chinas' Commecial Bank

In the financial markets increasingly fierce international competition situation, the quality of financial assets as a measure of a country's economic strength and competitive advantage, an important symbol. While the huge non-performing assets of commercial banks, not only harmful to liquidity of bank assets, affecting the stability of the banking system, but also to varying degrees, undermined the banking sector for economic development, supporting role, and may even hurt the country's economic security and political stability. Great importance to China's commercial banks dispose of bad assets, legal issues, an effective resolve the huge non-performing assets of commercial banks to improve quality of financial assets to meet the challenges of globalization is related to China's economic and social development as a whole, is placed in front of my Government and banks, a significant problem. Due to historical, political and management experience and other reasons, China has accumulated in the transition period of a large bank non-performing assets, China's commercial banks broad size distribution of non-performing assets, a huge amount of high rate of non-performing assets has been an indisputable fact. The existence of these huge non-performing assets has become China's financial system stability and economic development in serious threat. It is recorded as a reduction of bank earnings, seriously hampered the competitiveness of China's commercial banks; hindered the development of enterprises, ultimately affect the pace of China's economic reforms; lead to poor national economic performance, endangering the country's economic and financial security. Countries in the world is facing a serious non-performing assets of banks, according to their different national conditions, has taken various measures to be disposed of. Commercial banks dispose of bad assets are the main ways for banks to inject capital, the formation of financial assets management companies, and debt to equity, asset securitization and foreign participation. Since 1999, a prelude to China's non-performing assets disposed of since the start, China has successively promulgated and implemented a series of non-performing assets of commercial banks to dispose of laws, regulations and judicial interpretations of these laws and regulations and judicial interpretations of non-performing assets disposal laws and regulations of the gradual improvement of non-performing assets disposal also made some initial results. But in the current national conditions, because of non-performing assets, a wide range of complex legal relationships involved in the practice of non-performing assets disposal operations, both non-performing assets disposal of the general legal support, or debt-equity swap, asset securitization, or the use of foreign capital, more or less, there are some legal issues. Against China's national conditions and the experience and put forward the disposal of non-performing assets of commercial banks, measures to improve relevant legal system, to develop a special debt-laws, to build non-performing asset securitization legal system, improve the utilization of foreign capital disposal of non-performing assets of the legal system.