Reflections On The Disposal Of Non-performing Assets Of The Banking Sector To Provide Judicial Guarantees

Finance, the core of modern economy, has more and more close relationship withthe real economy. As the most important financial industry, banking has a big problemwith bad debts, which has been concerned by the whole society. How to effectively dealwith bad debts of banks is a critical work for us. It would significantly boost Chineseeconomy and finance, and would also smooth the development of national economy. Inaddition, it is a practical way to bring out harmonious political, economic and socialdevelopment in China.Private economy has been intensively developed in Zhejiang Province. Thejudicial department of Zhejiang has gradually issued a great number of articles toensure the economic development, service the financial reformation, address privatedisputes and improve the disposal of bad debts. Quzhou is a city located in the west partof Zhejiang Province. Recently, both economy and society of Quzhou have beenadversely affected by the bad debts and bad loan ratios in banking industry. It resultsfrom multiple factors, such as macro-economic policies, risks of business capital chainsand guarantee chains, and so on. In this circumstance, the quantity of financial disputesheard by the court of Quzhou does not increase too much, but the amount of object ofaction increases sharply. Speeding up the disposal of bad debts in banking industry hasbeen a primary task to the judicial department. The author has been participated in thestudy group which was established by the Quzhou City Intermediate People’s court, theQuzhou Municipal Committee of political science and law, Quzhou Banking Bureau,Quzhou law society and the city of Quzhou Banking Association. The group worked onthe topic of improving the disposal of bad debts of banking, and collected relatedmaterial that would be the basis of this article. The author uses various researchmethods including abstract analysis, literature review and empirical studies to supportthe argument. At the meanwhile, The article also reference to some of the literature, inorder to support the views of this paper. State the background, significance and its current condition then introduce thetopic and prepare the theory foundation. The second part, the paper analyzes thedisadvantages of china’s non-performing assets disposing strategy and lagging ofchina’s financial reform, and Focus on the appropriate reform measures andsuggestions.The third part, study on legal issues of bank’s non-performing assetsdisposal Quzhou for instance.The fourth part, an analysis of causes of financialcases.Then, the paper try to analysis the technicalities are complicated, on financial,legal and in real life.At last,it focuses on the major problems the bad debts face within doing research, and points out the importance of the ability to solve problems ineconomic life, and some suggestions to deal with these issues...