On China Commercial Bank's Bad Debts And Solutions

The non-performing loans of commercial bank is a worldwide ecnomic issue,and it puts an important impact on a country's financial system. Therefore, how to effectively control and reduce no-performing loans becomes a key problem for which the whole financial circle has shown common concern. In China, bank's non-performing loans is always very high which has become a political factor which violates the financial stability and the major bottleneck which restricts the economic development of our country.Just under such circumstances, however, we still have to face great pressure and challenge for the WTO entry. The fact is our country will become one of the WTO's members in November, 2001. As a member, it must not only enjoy its rights but also fulfil its duties. So in the financial market, we have to bear the competitive pressure and fulfil the duty of opening domestic market But, how could such fragile financial system which has such high non-performing loans compete with the foreign banks that have solid strength and rich experience?Because of the above mentioned reasons and backgrounds, the author analyzes the actuality and cause of formation about the non-performing loans in the commercial banks of our country in order to properly solve it as soon as possible. Mean while, the author puts forward the blueprint on how to solve the problem by combining with the experiences and lessons on handling the developed and developing countries, and points out that we must reform our macro-financial structure to control the non-performing loans increment in the course of reducing the non-performing loans stock so that we can eradicate this problem.