The Reasons, Disposal And Countermeasures Of Non-performing Assets In Jilin City Commercial Bank

In recent years, depending on the development of macroscopic economy, commercial banks in China make great achievements. But during the fast development, many problems have arisen, specially the questions of non-performing assets which have become the bottleneck of commercial banks'further development.This article plans to inspect the disposal of non-performing assets in Jilin city commercial bank, and tries to establish persistent mechanism on non-performing assets'management and the risk's control through the positive and theoretical analyses.The paper is divided into four parts, first part: stutas quo of non-performing assets in Jilin city commercial bank. In this part, firstly the author makes the definition of the bank's non-performing assets, pointing out that the non-performing assets of commercial bank is the assets that cannot bring the normal interests and even not be able to take back the capital under the actual condition. In this paper, the bank's non-performing assets identifies with the non-performing loan. According to the five-level classifications of loan, namely normal, the attention, secondary, suspicious, loses five kinds of types the loans, the latter three kinds of loans is called the non-performing loan.Secondly, the author gives the outline of the non-performing assets in Jilin city commercial bank, pointing out that formation of non-performing assets in Jilin city commercial bank has its historical background and has the negative influence to the healthy development of Jilin city commercial bank. Second part: I introduce the formation reasons of non-performing assets in Jilin city commercial bank. Firstly, I analyze the provincial characteristics and the periodically characteristic of non-performing assets and point that it is connected with the national macroscopic economic situation and the economic policy closely. Secondly, I classify the formation reasons into three kinds, namely,ⅰ,exterior objective reason, mainly including the political risks, the market risks and the natural risks;ⅱ, the borrower's reason, mainly including the business capacity, the management level and the subjective evil intention and so on;ⅲ, bank's own reason, mainly including the establishment and execution of the system, the loan ways and the operation level and so on.Third part: the disposal of non-performing assets in Jilin city commercial bank. I consider that the complexity and the hardship of the disposal lie in the complexity and the particularity of formation reasons, and limitation of disposal market. Difficulties mentioned above decide that non-performing assets'disposal must be treated differently and we must use all resources to realize"all-win". At the same time, through the reference to the modes of overseas disposal of non-performing assets, the ways of disposal in Jilin city commercial bank consist of the debt reorganization, the trust, the property securitization and the bad debt cancel. Through analyses to the good and bad points and the feasibility, the author tries to find a relative optimized way to the disposal of non-performing assetsFourth part: countermeasures against forming the new non-performing assets in China Banking. On the one hand, banks must disposal the consisting non-performing assets, On the other hand the banks must find countermeasures against forming the new non-performing assets. The latter is more important than the former. The article suggests achieve the aim mention above through constructing the exterior institutional circumstance and consummating the internal comprehensive management.The ways to constructing the exterior institutional circumstance include perfecting the legal framework, disclosing the information compulsively and strengthening the construction of credit system and so on. The ways to consummating the internal comprehensive management mainly include the bank's joint stock system reform, strengthening the control from the inside and so on.The disposal of non-performing assets in China Banking is a systemic engineering, which relates whether the systemic monetary reform in China will succeed, whether national economy in China will develop steadily and the entire society keep the long-term peace. Though there exist the complexity and the hardship, we can find a distinctive China-style road in the reorganization of banks'non-performing assets through linking the foreign experience and our realities.