A Study On Improving The Debt Assets Disposal Efficiency Of Rural Credit Cooperatives (RCC)

As is known to all, debt asset is a kind of non-performing asset of RCC. It has considerable loss risk. In recent years, the non-conforming loans of RCC have greatly decreased, but debt assets balance is quickly surging with increasingly prominent risks. Hence, debt assets disposal attracts wide spread interest particularly from RCC (one of the second batch of further reform pilots). Some monitoring departments like People's Bank of China and China Banking Regulatory Commission proposed strict appraisal standards and regulatory advices to help RCC accelerate debt assets disposal through improving its efficiency, and to prevent and reduce financial risk.The author begins from the necessity to improving the efficiency of debt assets disposal. It is considered that improving the efficiency of debt assets disposal is a necessary means to reduce assets risk and improve assets quality, and is also an indispensable basis for RCC to cash the central bank's bill. Moreover, RCC is local financial institute in essence; it mainly operates the circulation of currency, while is not allowed to manage debt assets and is asked to dispose the debt assets as soon as possible. Therefore, it's quite necessary to improve the efficiency of debt assets disposal.Then, the author analyzes the current problems in RCC debt assets disposal. There seven problems restrict the efficiency of debt assets disposal. Firstly, there are various defects in debt assets, such as incomplete legal procedure, virtual high price, big loss in disposal, high fees and taxes, and complicated procedures. Secondly, non-commercialized and simplex disposal restrict the debt assets value discovery and use efficiency. Thirdly, lack of test mechanism gives rise to the low efficient disposal. Fourthly, the multilevel legal person system and decentralized management inhibit the disposal efficiency of debt assets and increase disposal's cost and risk. Fifthly, extensive-disposal of debt assets may cause damages rather than improve efficiency. Sixthly, the ethical risk in debt assets disposal is another problem. Seventhly, lack of the talents for debt assets disposal directly restrains the efficiency. While highlighting and deeply expounding the problems in the disposal, the author analyzes the reasons for respective problem, attempting to find the corresponding solutions. It provides a base for how to improve debt assets disposal in RCC. The author boldly proposes nine suggestions to the problems in improving efficiency of RCC debt assets disposal: first of all, prudently accept the debt assets. Second, obtain the favorable policy and work advantages from local government. Third, emancipate disposal mind, and introduce commercialized disposal pattern. Four, creatively dispose the debt assets in diversified ways. Five, explore the centralized disposal management pattern based on provincial union. Six, dispose debt assets legally, properly, efficiently, and no hidden troubles. Seven, actively explore and try the not yet transferred debt assets disposal. Eight, prevent the ethical risk in the process of assets disposal. Last but not least, should enhance team building and talents training in debt assets disposal, thoroughly to solve the problems that inhibit the efficiency of debt assets disposal.This paper sets about the study on RCC debt assets disposal efficiency, basically expounds the problems inhibiting the debt assets disposal efficiency and relevant reasons and proposes diversified methods to improve the disposal efficiency, so as to help RCC accelerate debt assets disposal and improve assets quality. Particularly, the author pre-explores the beneficial ways on debt assets disposal, and forecasts a probable better prosperity and development of Rural Credit Cooperative in the future.