China's Financial Asset Management Companies To Development Problems

In the late 1980s, with the non-performing loans of commercial banks all over the world continuously accumulating, the management of the commercial bank itself and the stability of financial economy were badly affected. The non-performing loans of banks has because a world problem .All the governments have paid great attention to it and adopted avail measures to handle it.There are three kinds of modes used for handling the non-performing loans abroad: (1): the made of the bank itself handling; That is the bank supports the loss on its own financial power. (2): the mode of entrusting to the care of concentration; that is, financial property management companies are established to entrust to the care of the non-performing leans and the specialized organization concentrates the non-performing loans. (3):Direct removal mode of dead debt, that is, the dead debt is directly cleared up and transfer to the nation . From all the countries fulfill meat experience, the company of financial property management is a kind of mode widely used all over the world and is also a kind of made of validity.Because of the complexity of the non-performing loans , all countries handle the non-performing leans not only in one made but various modes. Each kind of mode divides the work mutually and matches closely at the same time, Generally speaking when banks have less non-performing loans and financial crisis is opposite fore the mitigation, thanks adopt the bank independence handling mode. When banks have more non-performing loans and financial crisis is quite severity, banks adept the mode of entrusting to the cure of concentrate. That's to say, the non-performing loans are handled by financial asset management corporation.In the 1980s,financial asset management corporation develop quickly. Developed Countries, transitioning countries and the newly arisen market economy countries all set up such companies to handle the non-performing loans and the similar organizations still exist. They achieved good results and gathered plentiful experience.The earlier period measures to solve the non-performing loans iv China is that if the state-owned commercial banks suffer a great loss, they should report it to the state Department and ark for immunities. Delinquent debt reserve system began to come into effect in 1988, requesting the state-owned commercial barks to withdraw the delinquent debt by law. But later the single delinquent debt reserve system couldn't satisfy the demand for handling the non-performing leans because of the leans of state-owned commercial banks is increasingly outstanding. Our counting drew lessons from the property management company mode internationally widespread adopted in the world including RTC in America. So the four financial asset management corporations: XINDA, HUARONG, CHANGCHENG and DONGFANG were established in 1999 handling the non-performing leans of state-owned commercial banks. The function of our country's financial asset management corporations is to disperse the financial risk, to support the enterprise reform and keep inctact the state-owned property.The four financial asset management corporations purchased and accepted 139,320,300 of the non-performing leans from the Construct Bank of China, the Industrial Bank of china, the Bank of China and the Agricultural Bank of china, which played onimportant part in decreasing the non-performing loans. The four financial property management companies have worked for three years and acquired great achievements. They not only finished the organization in a short time and accepted the non-performing lawns but also took an active in researching and designing the method to take the gauge of the designing the method to take the gauge of the property , tried the obligation to renew hard, the agio to cash , asset for cash the loan, cut the price for the forced sale and debt-share conversion and received goad resolution and made a good foundation for disperse the financial risk and pushing forward the reform of state-owned enterprise and backs.Though the f...