Research On The Non-performing Asset In China Construction Bank

Regarded as the hard core of Chinese banking system, the four major state-owned commercial banks are playing a crucial role in the development of our national economy. Their state of operation will have a great impact on the healthy development of finance and political stability of our country. However, as the financial reform deepens, some incompatibilities embedded deep in these state-owned commercial banks begin to expose, one of which is the non-performing asset (NPA) problem. According to the relevant regulations of WTO, China will open the banking area to the outside world in an all-round way at the end of this year, and by then Chinese banks will compete with the foreign banks on a fair ground. Therefore, whether the problem of huge amount of NPA can be solved in a rapid and effective way not merely determines the outcome of the fierce global competition but also is the key factor to achieve success in our economic reform.This thesis takes China Construction Bank (CCB) as an example, conducting a research on the current situation, causes and disposition of NPAs existing in the four major state-owned commercial banks. This paper composes of four chapters.The first chapter introduces the concept of NPA, compares its two different defining standards and analyzes its negative influences both from the micro and macro level. The NPA not only affects the operational situation and market competitiveness of the individual bank, but also influences the security of the whole financial system and the potential of economic growth.In the second chapter, we trace the history of the development of China Construction Bank, and analyze its current situation about non-performing asset. On one hand, based on its structural characteristics we analyze the loan centralizing phenomenon of CCB. On the other hand, we analyze the recent change of NPA in CCB along a time line and compare the NPA in CCB with its counterparts in and abroad, revealing CCB's credit risk.The third chapter emphasizes particularly on the cause of the non-performing asset in China Construction Bank. Firstly, it examines the historical background of the...