Study On Non-performing Assets' Pricing Problem Of The State-owned Commercial Banks In China

In 1999 China established four AMC to accept and deal with non-performing assets (NPAs) that stripped from four state-owned commercial banks. However, several years past, the number of non-performing assets is still very high. Correct its causes, in addition to our institutions, the market and other factors, the assessment of NPAs to tighten its pricing are the key problem. In order to explore this issue, this paper will begin with domestic and overseas theories and empirical approach, then analysis the AMC's two pricing methods systematically, advancing a new method of disposal pricing, and gives policy recommendations at the last. Because of there are two transactions from bad financial assets of the state-owned commercial banks to AMC and final disposition to investors: the former is called transfer pricing, and the latter is disposal pricing. Therefore, this paper is structured as follows:Chapter I is mainly about the writing background, the purpose, the significance of introducing the theory and the research findings. Then it analyses the current situation of NPAs'pricing problem of China. And raise the questions at the last. Chapter II is about the research of NPAs'transfer pricing. In this part, paper first introduced the successful experiences of United States, Malaysia, South Korea, and Sweden on the NPAs'transfer pricing activities, and drawn inspirations; Section II is focus on how the domestic AMC to receive and pricing NPAs at present, then make evaluations. Furthermore, Chapter III is a studying of NPAs'disposal pricing. As we know, there are several major disposal methods when AMC dispose NPAs: debt to equity, bad assets securitization, credit and debt restructuring, sale and auction and so on. So this part is researching for the each of the applicable pricing formula of these four methods, and, of course, applied case studies to testify them. Consider for all kinds of factors, the fourth chapter is based on the arbitrary pricing theory, and set up a more universal disposal model of AMC, then give a analysis of the feasibility of this model and inadequate. As the last part, after Chapter V considers all the pricing study in a comprehensive way, it set out four factors which hamper domestic NPAs'pricing, and make corresponding policy recommendations.