Commenting On And Analyzing Non-Performing Assets' Problem Of Domestic State-Owned Commercial Banks'

Financial developments play an important role in economic growth, and it is a common view that healthy financial system is one of economic growth's necessary conditions. But the problem of non-performing assets terrifies into financial the system's healthy development, which attracts the academic community's and political circles' much attentions.From the angles of theory and demonstration, this article analyzes why non-performing assets come into being, and brings up policy proposal on eliminating non-performing assets, basing on commenting on and analyzing foreign and domestic non-performing assets' disposing experiences. First, the article analyzes the theory cause of non-performing assets. In my opinion, the problem of banks' non-performing assets is essentially due to financial contracts' non fulfillments. Second, basing on analyzing the actualities of domestic state-owned commercial banks' non-performing assets, and combining the particularities of domestic economic system's operation, the article probes into the special courses of domestic non-performing assets, including planned economic system's remaining influences, two incompatible running purposes of domestic state-owned commercial banks, limitations of corporate government structure, market risks, legal system's deficiencies, and so on. Third, the article also sums up foreign and domestic experiences on non-performing assets managements. Foreign experiences, on the purposes of improving banks' risks control level, include businesses diversifications, disposing the problem in time, capital injection, setting up asset management corporations, restructuring state-owned commercial banks into shareholding enterprises, and financial contracts' innovation. Domestic measurements, comprising of capital infection into state-owned commercial banks, setting up AMCs, establishment of supervision institute, improving related legal system, have gained effects, but there are some defects. At last, the article brings up several proposals to resolve domestic state-owned commercial banks' problem of non-performing assets.Lays of theory and demonstration analyses devote to fully catch on roots of domestic state-owned commercial banks' non-performing assets' problems. And bringing up countermeasures and proposals on resolving non-performing assets, basing on causes analysis and foreign and domestic experiences and lessons, is worthy definite guidance meaning.