Study Of State-owned Commercial Banks' Bad Assets

The non-performing assets (NPA) of state-owned commercial formed in our country during the period from planned economy to market economy, the reason is complicatedly and variously, such as the reasons of the state-owned bank , the state-owned enterprise , the government interference , economic fluctuation , and financial supervision ,etc. In our country, because of influencing by planned economy for a long time, the horizontal credit relationship is replaced by the vertical credit relationship basically; the bank, state-owned enterprise and residents all believe the government will be responsible for its loss. Under this situation, the social fund flows into the state-owned commercial bank continually, the bank fund flows into the poor efficiency state-owned enterprise under government interference, forming the non-performing assets in the state-owned commercial bank finally, it is a forming mechanism of non-performing assets, on one hand, the state-owned commercial bank has accumulated a large amount of non-performing assets, on the other hand, face debt require of creditor, state-owned commercial bank have been in bankrupt state, it can remain stable , the reason lies in under the circumstances that the national credit is assured , the social fund is still flowing into the state-run commercial bank constantly, the question of the non-performing assets was concealed temporarily, when facing foreign financial institution's competing soon, once the great change takes place in the social funds flow, the mobile crisis of the bank will appear , and then may cause large bank crisis , cause the great setback of national economic development. So, treat the question of non-performing assets, not only should handle its stock, but break its forming mechanism , only in this way, treat both principal and secondary aspect of disease, could dispel the historical burden of the state-run commercial bank completely , really realize its commercialized running, eliminate the hidden danger of national economic development.Handling the non-performing assets of the stock, the government's administration means are no doubt very essential, and valid in a short time, but there are a lot of drawbacks for a long time, it is the assisting and supplementing of the means for marketization, the basic settlement way is to utilize the market-based means, setting up effective NAP trade market is the permanent way to solves the of NPA. Meanwhile, this market can handle the recycled flow non-performing assets effectively. Like other commodity market, the trade market of the non-performing assets is formed by trade subject, trade object and trade rule, particularity, the question is that the non-performing assets is a kind of non- standardized risky goods, both parties deposit in serious information asymmetry tonon-performing assets, handling NPA, it is essential to solve risk of information defect, so effective competition and disclosure of information for structure perfect non-performing assets trade market particularly important. At present, non-performing assets trade market in oligarch competition state, there are only several foreign investment bank except four asset management companies, making trade subject effective competition, first asset management company should make the transition to commercialization, secondly should train other marketing subject actively. The disclosure of information of the non-performing assets depends on the perfection of the market rule and legal system environment.For taking precautions against the non-performing assets, must attend the formulation mechanism of the non-performing assets of our country, the more important thing is to break it, should from state-owned enterprise, bank, government and our country financial system, etc, establish the system of perfect precaution. Setting-up the modern enterprise system of state-owned enterprise, commercial bank shareholding system transformation control perfection and perfection, government of function of mechanism the key to breaking the non-performing assets and turning into the mechanism, in perfecting operating mechanism of enterprise and state-owned commercial bank, should standardize the relation between the government and state-owned enterprise (bank), defining the functional positioning of the government and market, at same time , taking precautions against the non-performing assets must perfect the financial system of our country , develop the capital market, reduce the financing risk of the bank , strengthen the bank , strengthen it and tackle risk ability.