A Study Of The Non-performing Assets Management And Valuation Case

Commercial banks have made important contributions to promotenational economic development, support economic reform and maintainthe social stability. But for various historical reasons, domesticcommercial bank was troubled by many bad assets. After more than10years of efforts, especially with the restructuring of domestic commercialbanks as well as public listed commercial bank of China had made greatstrides to improve credit assets quality, proportion of the total amount ofnon-performing assets, risk management and disposal capacity has beensignificantly improved. In the domestic environment of homogenizedcompetition of commercial banks, the Bank have to raise the corecompetitiveness by improving the capacity of internal risk control andmanagement ability of the disposal of bad assets.According to the non-performing assets trading market in China isnot yet developed, this thesis introduced the non-performing assetsvaluation conception, explained the importance of the bank assetsvaluation. By the actual case analysis, it clarify the application of non-performing assets valuation model. Reasonable bad assets valuationby commercial banks themselves will help bank to achieve refinementmanagement and ultimately maximize the disposal results.First of all, the thesis describes the present situation, formation causeand tendency of non-performing assets in commercial banks in China, themajority disposal methods based on the present legal environment. And itconcluded that non-performing assets valuation of commercial banks is ofthe great significance.Then, through the empirical and case study and the comparison ofcommonly used non-performing valuation model, the article elaboratedthe further attention to issues in valuation model in practice and explainedthe application of the model after Analysis of a non-performing assetsdisposition case.Finally, the thesis analysed the disadvantages on currently valuationmodel, and made some improvement recommendations, hoping that ourcommercial banks can further improve the accuracy of the valuation andmake progress on the ability of the non-performing assets dispose.