The Disposition Research Of Non-performing Assets In Our Commercial Banks

The disposition of non-performing assets in commercial banks is always a worldwide headache. Every country takes measures and modes according to their situation. Overall, these styles are both using administrative methods and with the help of the market effective operation. But most counties use them alternately and take one emphasis suit their national conditions.To solve the huge non-performing assets accumulated in our commercial banks for many years, in 1999,China established four Asset Management Corporations (abbreviated as AMC), known as Cinda, Huarong, Orient and Great Wall. The four AMCs started their asset management and revolution after the first batch of non-performing assets amounted 1.4 trillion RMB was peeled off from the respective four state-owned commercial banks in 2000. But their performances are not satisfactory as resolution activities were limited because of our undeveloped financial system, not ideal non—performing assets market and special national conditions.This article analyses these problems exposed in solving the non-performing assets throughresearching the AMCs' disposition modes and condition, and in the market view, put in an attitude that government should standardize the market-oriented operation, enlarge the information sharing space in the disposition market and introduce the private economic so asto build up a fair, open and competitive market system. While the AMCs' future is uncertain as their ages are limited, how to dispose the new growing non-performing assets in the commercial banks is becoming a severe problem. This article explores commercial banks autonomy disposition modes, and learns from the international successful experience, puts forwards some countermeasures and suggestions to remove the non-performing assets more effectively and control the financial risk and social risk.