China's Commercial Banks' Bad Assets Disposal Of Thinking And Application

Text Brief:There are a large number of non-performing loans accumulated in China's commercial banks, which is a direct impact on the country's financial safety and economic stability operation. To have a good disposal of these non-performing assets properly or not, to a large extent,it will affect the vitality of the entire financial system.Such as the impact on the banking liquidity, resulting in loss of funds in banks, resulting in deterioration of the bank's financial situation, the rational allocation of social resources constrained, and a serious constraint in China's commercial banks to participate in international competition. Herewith,in this text,we will, base on the current status of the domestic non-performing assets, analyzes the causes of commercial bank non-performing loans, including the macro-causes, external and internal causes,of the domestic commercial banks, to find the formation of non-performing assets. Referenced on the ways of dealing with bad assets from the United States, Poland and other countries, in which we can learn from the disposal mode, summary disposition of foreign experience and lessons so that we in the non-performing assets disposal to avoid making the same mistakes, using more efficient means of disposal.The author,for a long time, is engaged in practicing the disposal of non-performing assets, at the meanwhile,researching the disposal model from the other commercial banks. Herewith,we will,base on those actual jobs, focuse on analyzing a variety of non-performing assets disposal, mainly including non-performing asset securitization, non-performing asset sales, endorsing asset management contract, adjust the claims structure of non-performing assets, restructuring, etc.. From the causes of non-performing loans, as well as from the disposal, we try to find a suitable solution start from the Government, state-owned enterprises, and the banks which all can not shirk the responsibility. We are required to change the traditional mode of taking back,since it is limited to the use of clear income of recourse debt, write-offs, transfer of mortgage assets auctions, etc., and not suitable for market-oriented operation mechanism of the modern joint-stock commercial banks.Therefore, to enhance market-oriented operation system and mechanism for the pilot and promotion on non-performing assets, and actively explore the modern joint-stock commercial banks dispose of bad assets under the system of new ideas has become an inevitable choice. At the same time, we should,combined with the practical application of flexible and diverse way to clear income, actively carry out debt restructuring pilot projects to promote the recovery of claims as soon as possible.,the pilot securitization of the assets of non-performing assets and improve asset quality., also the use of the trust mechanism to dispose of mortgage assets.Also the legal issues which the disposal of bad assets involved in, as well as in the disposal of assets of how to effectively use the legal protection of commercial banks in their own claims, will be analyzesed here.And,based on an analysis of the causes of non-performing loans, made advice to avoid more a large number of non-performing assets,At the meanwhile with exploring the disposition of non-performing assets, we also raise legal issues which should be noted that in the actual disposal process, to make sure every step is within the law, so that disposal process can be more efficient.