Assessment Of Banks' Bad Assets

For some history reasons, our commercial banks have commutated lots of non-performing loans(NPL). These heavily affect the safety and the order of our banking. So, If we hope to get further financial reformation and defend financial risks, it's very important to us that how to dispose of these NPLs effectively. Only by these, we can keep our economy continuous and healthy development. As we know, the first thing of disposing the NPL is assessment. Thus, it brings a new field for assessment. At the same time lots of challenges come together. As for this kind of assessment, it's mainly about creditor's rights appraisal. However there is not an agreement or regulations about creditor's rights appraisal in China. So assessors must encounter some new conditions and new problems in the period of evaluation. And there are many problems waiting us to research. This article is designed under this situation.There are four main parts of this article:First part(Chapter one), introduce some basic knowledges about NPL and NPL assessment. And analyze the situation and disposal of NPL.Second part (Chapter two and Chapter three), it's the central part of this article. In this part, the author mainly analyse two kinds of NPL assessment: debt payment ability assessment and the value of creditor's right appraisal. At the same time, the author discusses some detailed information about these two assessment models. And put forward some problems encountered in the course of appraisal.Third part(Chapter four), Author analyze some problems encournted when apply the NPL assessment methods. And make some special discussion about several exceptional conditions.The last part(Chapter five, Conclusion). In this part, the author firstly uncover some problems consisted in the appliment of NPL assessment. And then put forward some advice to perfecting them. In the Chapter conclusion, main information of this article is reviewed.