Securitization Of Non-performing Assets Of Commercial Banks In China's Development And Innovation

The proportion of nonperforming assets in commercial banks in our country is high and the number of them is great, which contain great financial risks and hindered the development of the banking of our country and the operation of national economy seriously. We have obtained some achievement through the efforts in recent years, but the pressure is still great. The problem of using new method to handle the bad assets become the focus more and more. The theories of nonperforming assets securitization (NPAS) have already been perfected gradually, also, good results have been made in practice abroad. Our country has begun to try handling nonperforming assets by NPAS and has made certain progress. The paper mainly analyses and summarizes the evolution of NPAS in our country, and puts forward some views in order to promote its domestic development. The paper divides four parts.Part one: analyzing the basic situation of the handling nonperforming assets in this part, and draw the advantages and necessity of NPAS in our country. This is the foundation and the starting point that NPAS. This part still includes the analysis of the reasons to nonperforming assets of the stated commercial banks of our country.Part two: analyzing the situation of development of NPAS on the range of the world, including its trend and characteristic. NPAS in Korea developed later, and the reasons of the nonperforming assets have similarity with ours. Korea has handled nonperforming assets by NPAS and becomes the typical representative of newcoming advantages. Thus, there is an NPAS example of Korea in this part, and the enlightenments are drawn.Part there: this part has analyzed evolution of NPAS in our country. Three examples are introduced in detail and the characteristic of NPAS in our country are summarized. First, NPAS has become the exorable trend; second, its development model is progressive, which is decided by external condition of NPAS in China. Meanwhile, the understanding and application to technology of NPAS is quite along process. Finally, trust level has becomes main trading structure. At the end of this part, according to the accounting criterion about NPAS of USA, accounting profit and loss are analyzed to try finding the main factors which influence the changes of them in order to serve the further development and innovation of NPAS in China.Part four: some suggestions and ideas of innovation to the NPAS in our country are proposed in this part. First, analyze the environment of NPAS in our country, which is an external foundation of NPAS; second, try taking some ideas about innovation of NPAS; finally some policy recommendations are proposed, including the perfection of the law, development of security market and support of the government.