A Discussion On Formation, Reallocation And Operational Innovations Of Default Credits Of Commercial Banks In China

The default credits of commercial banks in china which is relevant with the stability of finance system is the focus now. If the problem couldn't be solved, the economic and political stabilization of china would be influenced deeply while the southeast Asia financial crisis is a precedent .The article analyzed the formation of default credits of commercial banks in China, reallocation in default credits market and discussed operational innovation of default credits in China .Five sections constitute the thesis. Chapter 1 summarize the background, major problems and frame of this paper, chapter 2 analyze the formation of default credits of commercial banks in china, chapter 3 recommend reallocation in default credits market in china, chapter 4 discuss operational innovation of default credits in china. Thus comes chapter 5, which presents the conclusion and recommendation.The conclusions are---commercial banks and asset management corporations have different methods on asset management and reallocation under existing laws and policies. They should explore diversified channels of asset resolution and utilize capital market, entity market, foreign exchange market, enhance liquidity of default credits and gage, raise asset quality, explore the potential value of default credits and enhance the competitiveness of the borrower's core business. In all, we shall speed up business innovation, accelerate asset resolution process, maximize asset recovery.