Study Of Non-Performing Assets Disposal In Bank Of Qingdao

The volume of non-performing assets (NPA) in Chinese banks has been controlled within a reasonable scope after years of endeavor. China's economy still retained fast expansion during 2009 to 2010 due to governmental quantitative easing (QE) monetary policy after the 2008 global financial crisis. However, we should pay attention to the current perilous situation that there are many sequential problems caused by this QE monetary policy, such as high expected inflation, continuous soaring CPI. As the crucial controlling factor of national economy, banks should pay enough attention to NPA. Given the current situation in the Chinese market, it is highly necessary to study proper disposal methods and prevention measures of NPA.NPA is a global financial problem, which was a fatal problem and limited the economic development of many countries. The author will use the empirical analysis/investigation method for the intrinsic driving force and dispose of the NPA in Chinese Bank industry. We also compared such the methods with the previous experience from US and Japan. The author had years of experience in handling the NPA in Bank of Qingdao. We analyzed the intrinsic driving force of the NPA in Bank of Qingdao, as well as the current situation such NPA. We proposed innovative method to conduct such NPA.With the development of the construction of the "Blue-Economy Development Area ", Bank of Qingdao will conduct the NPA with a harmonic and rational method. Bank of Qingdao is a local bank with limited asset. It is still quite young without too much experience. Such characters are fundamental for prevent NPA from the every beginning. We will try out best to prevent the NPA. Such innovative methods will definitely benefit the development of the Bank of Qingdao, it will also benefit other local banks with the successful experience.