Study Of State-owned Commercial Banks' Bad Assets, The Disposal Of The Legal System

The top risk in Chinese economy is financial risk, which mainly focuses on bank problems, especially on the non-performing assets problems in the four major state-owned commercial banks. The commencement of 2007 ends financial protection in China; our financial industry has opened up to the outside world completely, and it shall be incorporated into global financial system to a large extent. Along with swarming into of foreign capital banks and other financial institutions, the state-owned commercial banks in China are inevitably face an unprecedented fierce competition and challenge. After years of accumulation, the non-performing assets problem in state-owned commercial banks will reach the risk point of financial industry soon, and this would undoubtedly affect bank system reformation and lag state-owned commercial banks behind in international competition. We should acknowledge that the overhigh non-performing assets ratio does exist in state-owned banks, then how to solve such a problem comes to front. We have already achieved some effect in solving stocking of non-performing assets in state-owned commercial banks, however, the newly-increased problems haven't been settled, and the non-performing assets overtly decreasing and secretly increasing problem and other ones should be settled once and for all. The author is well aware that socialist market economy is legal economy in essence, and in this paper he tries to analyze the disposal measures against non-performing assets from the legal perspective.In the paper, the author has analyzed and studied the non-performing assets problem in state-own commercial banks from four aspects, and has put forward considerations for solving such legal system problem.The first part is the fundamental analysis part about non-performing assets of state-owned commercial banks; the author has analyzed the causes of formation of non-performing assets from evidential cases and bank work experience, which has established a base and provided relative theoretical principles for the following countermeasures against such problem.The second part is analysis over the status quo of non-performing assets of state-owned commercial banks; above all, make theoretical analysis over scope and mode of bearing of non-performing assets in form, secondly, carry out institutional analysis over legal problems encountering in disposing non-performing assets.The third part is about the comparative analysis over disposal of non-performing assets, in which legal system arrangements adopted by America, Japan and Poland in disposing non-performing assets have been introduced and analyzed, such as: government participation and its functions, relative laws and regulations in disposing non-performing assets, structural organizations for disposing non-performing assets, disposal methods and etc. At last, the author has made a sum-up over legal arrangements adopted by such countries, since the above three countries have all gotten huge bank non-performing assets in different periods and the method they adopted for solving such problems are typically representative. With the international experience for reference, it is hoped that our country can conceive our own legal arrangement.The fourth part is about study over legal systems for disposing non-performing assets. The fast disposal process in foreign countries profits from their sound legal environment. Perfect legal system not only safeguards the smooth disposal process and but also is the basis for supervising transaction of non-performing assets. Using international experience for reference, the author has made detailed study over social credit environment in China, information asymmetry in bank loan and etc. to promote perfection of legal frame; in addition, he has put forward suggestions and methods for courts in hearing nationwide non-performing assets disposal cases, to restrain deregulation and ensure the fair and square in disposal process.By putting forward his opinions and suggestions over establishing sound bank system, enacting essential laws and regulations and downright solving non-performing assets problem, the author hopes that his crude remarks may draw forth by abler people in legal fields to fill the gap in non-performing assets disposal field in the near future.