Analysis And Selection Of Non-performing Financial Assets, Restructuring Mode

Lots of experiences and lessons has learned that, in the era of economic globalization, information technology and financial innovation, capital adequacy and well-functioning state banks can effectively guard against financial risks to withstand the financial crisis and support economic stability.However, as a high-risk industry, it definitly will produce bad assets. Therefore, how to effectively dispose of bad assets and defuse the risks of banks becomes the state general concern in the financial sector and the key issues needed to resolve effectively.Since the operation of our banking system, a high proportion of non-performing assets has been the focus of criticism.After the Asian financial crisis, NPLs in China's bank system have reached their highest level in history.It is far outstripping the 10% of international cordon and 15% of our regulatory indicators.So China established four asset management companies, receiving about 1.4 trillion of non-performing financial assets, which reducing the heavy burden of banks, removing obstacles of restructuring state-owned banks and improving the financial system against financial risks.In 2006, Disposal of non-performing financial assets has been basically completed. For widening the development path, asset management companies have made commercial non-performing assets disposal attempt in order to explore its own commercial development path. After ten years development of the industries, they sum up a set of scientific laws of development:cheap purchase NPLs in economic downturn, through asset restructuring and conservation, and sell them in economic development. At the same time, after 30 years of legal system and financial system reform, China has initially formed a multi-layered financial market which provides a rare opportunity for NPLs industry development.Restructuring NPLs is a key to enhance the value of NPLs.Systematic analysis of NPLs is very important to improve our non-performing asset restructuring ability and level.Analysis and selection of restructuring NPLs is a kind of practical financial research. And a Financial contract is its carrier and Economic activity is its substance. Therefore, a large number of outstanding succesful stories are the object for the analysis; game theory is the basis of theoretical analysis; Case Analysis is the end of the text and I present my own views on the difficulties which may be encountered in operation practice.In this paper, financial NPLs are the starting point. Financial NPLs are classified as three types of resources, which are"transfer of resources", "soft resources" and "the early realization ". I establish three types of different restructuring goals, naming "grasping the appreciation of the opportunity", "reducing the pressure on corporate debt," and "preservation of the claim proceeds".Finanlly I try to build an Analysis and selection model of restructuring NPLs, combining the analysis of four form factors and 14 kinds of recombinant factors.