Valuation Of The Non-performing Loans Owned By Financial Asset Management Company

Non-performing loans(NPLs) have been a heavy historical burden to commercial banks,posing great risks to the financial industry and serious potential problems to the national economy. For solving this difficult problem during the economy development, governments established financial asset management companies(AMCs) specializing in the disposition of non-performing loans. Therefore, it can support the stable, rapid and healthy development of the national economy. Non-performing loans primarily contain loan assets, equity assets and physical assets, among them the loan assets occupies a large proportion. Loan assets are also a core disposition business for financial asset management companies. calculating the reasonable valuation for the Non-performing loans is the crucial content to resolve the problem of non-performing loans as soon as possible. Researching a appropriate calculating mechanism and valuation analysis model in China. Efficiently resolving the problem of higher deputizing cost during the disposition, have the positive meaning for the present and future financial reform.This paper analyzes various familiar loan assets pricing method according to the actual business operation experienced by the AMCs,and analyze an actual pricing model named as subsection calculating method. The method is based on hypothesis liquidation. Via a large numbers of the analysis of the actual business data, verify the realistic rationality of applied the pricing method. Put forward Non-performing loans will exist in Chinese financial system in a longer period. Finally this paper expounds the conclusions and future vision for the application of the pricing method.