The Case Study On The Value Analysis Of Non-performing Loan

As the economy entered a "new normal" and "three stacking", Chinese regional, localized increase in risk, the risk of further financial exposure. At the end of the fourth quarter of 2015, China’s commercial banks non-performing loan rate of 1.67%, non-performing loan balance of 1.95 trillion yuan, up 17 consecutive quarters, is expected in the absence of the appropriate stimulus package premise, commercial banks non-performing loans will rise further. Bank financial institutions in a more special class, which provides for the financing of the main market place, but it is because of bank financing for enterprises, coupled with the current China’s overall economic downturn, prompting the rise in non-performing bank loans, China’s major commercial banks active NPL disposal operations.Since the 1980 s, North America, Europe, and the more developed parts of Asia broke out universal banking crisis, all banks actively seeking disposal of bad loans, many governments are also involved in the disposal operations, and actively set up a special disposal agencies, non-performing loans tends to specialized disposal. In a variety of disposal methods, the assessment of non-performing loans can be said is a prerequisite for a deal, the last decade, China’s financial markets are more unstable in the presence of non-performing loans has been like a time bomb, disposal of non-performing loans of banks became a big major commercial banks risk management. Our assessment of the disposal of bad loans in the sector have greatly demonstrated its role. On non-performing loans to assess scholars have made a lot of research, and there are a lot of results presented and applied to practical work, but the guidelines document has not been formed to regulate this. Valuation of non-performing loans on the targeted file will only "financial bad assets assessment guidance(Trial)", in fact, non-performing loans evaluation covering many complex issues is far from such a guidance that can be covered completely. NPLs of banks variety and complexity, even the moment still in the form of claims on innovation. Its complex manifestations that clearly and accurately identify the evaluation objects evaluate them or value analysis very difficult. For complex cases should be a careful look at the layers were analyzed. About the difference between theory and practice of non-performing loans to assess or value analysis, first, from the purpose of the assessment point of view, no matter what type of assessment matter, which are accurate and not just provide a reference value for the transaction, but also the right to request counterparties in accordance with the assessed value of the transaction; secondly precise positioning of objects and scope of the assessment to value analysis appropriate assessment method selected.In this paper, for the gap between assets evaluation theory and practice of research, were used literature research, case studies, theory and practice of combining the method of study, this paper to understand the history and status of non-performing loans Value analysis from a lot of the literature, personally to evaluate the actual operation of the analysis of non-performing loans, dig through the case, the difference between experience and theory were further study of all the details, full use of the research methods of combining theory and practice concluded. The first part describes the study of non-performing bank loans significance and value analysis research review, research methods; the second part of the terms and readers need to know the basic theory of this article a brief description to help understand the later; That is the third part of this article focuses on the case, including a brief description of the background of the case, due to the selection of this article is guaranteed unsecured loans and incomplete information, select the service type value analysis rather than valuation, mainly from corporate debt party and guarantees the business side to analyze the value of the recoverable amount of the loan, the core is to calculate the recovery factor of two, that is the case with past transactions database recovery recovery factor analysis to determine the basis of the loan, and then adjusted by other clues testing conditions the final recovery factor, that is, the final recovery ratio, the amount of credit to the value calculated on the basis recoverable. The fourth part of this case focused on the elements during the operation of critical analysis, we propose priorities and recommendations for future practical operation theory should study.Final conclusion: often theoretical research in the substantive areas of understanding is not deep enough, do practice appraiser has paid little attention to the process of academic research, there is a deviation between the two. For academic research, the paper argues that it should focus on innovative and practical assessment techniques, today many scholars to new, will evaluate the technical complexity of the research results can be non-operational. Legal norms should be studied to assess all aspects of the specification, to better serve the practitioners. For the assessment agencies for practical operation, in the assessment of bad loans to undertake business, we must first identify the type of business, it is a business valuation or business value analysis, measure their own operational capacity, value analysis of business since the situation is more special, more capacity requirements high; the evaluation process to deal with a deep understanding of the basic elements of each assessment, the assumption of control, accurate identification and assessment of target range, rational choice assessment methods, to fulfill law compliance assessment procedures.