China's State-owned Commercial Banks Non-performing Loans Centralized Disposal Mode Study

The non-perfect loan (NPL)is a outstanding problem with which major Chinesestate banks such as China Construction Bank, China Industrial and Commercial Bank,Bank of China and China Agriculture Bank are confronted. In view of the seriousnessof the problem, China central government chooses the Centralized Disposal Model(CDM)to deal with NPL of major Chinese state bank. This paper focuses onChinese CDM. It consists of three parts.The heading of Part 1 is "Conspectus on Chinese CDM". This part sets forth theconcept of the CDM, summarizes international exercise of the model, analysesestablish of the model in China, describes its basal system. In the end, the author ofthe paper points out relativity of the centralization and reasonably arrives at theconclusion that Chinese CDM is the sub-centralized disposal model. This part givesthe groundwork for next part."Problems of Chinese CDM" is the heading of Part 2. This part is emphasis ofthe paper. It summarizes and analyses these problems of the centralized disposalmodel from practice angle. These problems have been summed up four aspects thatinclude system, surroundings, disposal management and disposal means.The third part of this paper is "Optimization of Chinese CDM "which tries tosolve problems summarized in part 2. Taking into account new development directionfor four Asset Management Corporations such as Cinda , Huarong , Oriental andGreat wall, and using international experiences for reference, the writer of the paperdiscusses a series of measures including combination, throwing daylight oninformation, improving surroundings, intensifying disposal management and so on.With these measures adopted, these problems can be solved well. As a result, ChineseCDM can be optimized step by step in the near future.