State-owned Commercial Banks: Capital Injection Effect And The Possibility Of Non-performing Assets Rebound Analysis

Non-performing assets is the important factor that puzzles state-owned commercial bank's healthy development, is also deeply threaten the financial trade's safety of our country, even as to the economic and social stability. Since reforming and opening up to the outside world, our country has adopted various reform measures for state-owned commercial bank. To some extent, those measures have improved the state-owned commercial banks' operating performances, and strengthened its financial standing, but do not restrain the increasing of non-performing assets from its fountainhead. Thus how to establish a sound risk management system, perfect corporate governance, and improve operation mechanism, to stop the increasing of non-performing assets from its fountainhead, has become a heat issue of concern of academic area, as well as social public and practical circle.Firstly, the paper looks back for the three times' capital ejection of our country before 2003, elaborates the natural connection between the capital ejection and the non-performing assets. Secondly, the paper summarizes the backgrounds and effects of 2003's capital ejection, and also the commends to it of academic area. Thirdly, the paper analyses the possibility of non-performing assets' large-scale kick back of state-owned commercial bank after 2003's capital ejection. That is, state-owned commercial banks have many defects on their risk management systems; The tendency of credit concentration is increased; State-owned commercial bank's information handling and contract designing ability are weak relatively; State-owned commercial bank are at a disadvantaged position in current financial ecological environment.On the foundation of above analysis, the paper has put forward to guard against the specific measure of non-performing assets' kick back. Firstly, by perfecting state-owned commercial bank internal management...