Research To Revalue The Disposal Of Non-performing Assets Of The Banking

In the90’s of the last century, due to various of reasons at home and abroad, the amount of non-performing assets of our country is very great, and it affected and hindered the banking industry and the financial industry and even the overall health of the national economy. In1999, the government started set up four Asset Management Companies for that reason. According to the relevant data, four Asset Management Companies received the non-performing assets for three times since then. The first time in1999, four Asset Management Companies received the non-performing assets as to the book value of them, and the total value was up to1.4trillion Yuan. The second time in2004, the AMC took the commercial acquisitions to receive the non-performing assets of the big four banks. The third time in2005, the AMC received the bank non-performing assets with closed bid auction. After the second and third of non-performing assets receiving, the amount of the non-performing assets has added1.3trillion. Through the receiving of the non-performing assets and the improvement of the banking management system and internal system, the rate of bad loans in China’s banks is reduced from21.4%in1995to1.14%in2010and to1%in2013.However, the actual situation of our country bank bad assets is different from the published data even though the ratio of the non-performing assets is already greatly reduced. The bank’s non-performing assets problem is still serious compared with the foreign banks. In addition, though the ratio of non-performing assets of China’s banks has fell to1%, the amount is still huge and is still a potential factor of the bank risk. With the reforming and opening of the China’s stock market, the China’s bank will bear the huge competition pressure. The rate of bad loans may still rise again. Therefore, the study of non-performing assets of banks is necessary. This study is to revalue the bad bank assets in disposal. Bank bad assets has three states of acquisition, management and disposal. The acquisition of non-performing assets is the starting point of non-performing assets revaluation, revaluation is to make reference for purchasing price. Asset management is the key of non-performing assets revaluation, is to get the true value of non-performing assets of banks. The disposal of bad assets is the last link. Banks’ non-performing assets have book values in the banking system, but in the disposal of bad assets of banks, its intrinsic value has great difference with the book value. The purpose of this study is therefore.Types of non-performing assets of banks determines the method of revaluation. Bad assets can be divided into physical assets, equity of non-performing assets and NPL. Assessment of physical assets is mainly to carry on the research analysis to the real-market value of assets so as to provide reference for the transaction price. Most of the equity type of bad assets is from the non-performing assets of the bank debt, it needs to analysis the enterprise value, which in accordance with the proportion of equity of the equity value of non-performing assets revaluation. NPL, the focus of this paper, is through the research on the debt enterprise solvency analysis so as to evaluate the NPL value. The main innovation of this paper is through the study of bank bad assets revaluation value, analysis and summary of the existing value evaluation method to find the shortcomings of existing assessment methods, and to give several perfect plans. Although our assessment industry has a fast development, but it is still not enough in empirical research.This research framework and the main contents are as follows:The first part is the introduction mainly from three aspects. The research background introduces the present situation of the bank bad assets revaluation in this research, and the present situation of the non-performing assets of our country.The significance of the study is illustrated in this paper to study the non-performing assets revaluation value objective and value, is also the inner impetus of this study. Secondly, it includes domestic and foreign experts in bad bank assets revaluation of the literature briefly. Finally this paper puts forward the research problem and research method of this article.The second part is a summary of the non-performing assets of banks. This part is also introduced from three aspects. The first is the basic concept and the classification of non-performing assets of banks. Secondly, introduce the bank bad assets of the three forms of value.That is kind of bad assets, equity and bond type assets of non-performing assets. Finally, this paper briefly introduces the present situation of the bad assets of Chinese banks, through analyzing the present situation of the bad assets of Chinese banks, which reflects the necessity of the study in this paper.The third part is a summary of the bank bad assets revaluation value, including bank bad assets revaluation value basis, bad bank assets revaluation value principle as well as the bad bank assets revaluation value. The basic of revaluating banks non-performing assets is the value of classification based on the shape of non-performing assets of banks. Revaluation of non-performing assets of the main principles have three points:Expenditure below the recovery value principle, separation principle and properties determine the evaluation principles. Factors affecting the revaluation of the non-performing assets of banks are the financial factors and the non-financial factors.Financial factors are divided into business operations, financial solvency and development benefit condition and ability condition.Non-financial factors are micro factors, macro factors and medium factors.The fourth part introduces the method and process of bank bad assets revaluation. Based on the current methods of the non-performing assets, including the hypothetical liquidation, credit evaluation, comparable transaction method and expert scoring method, find the deficiencies in the existing methods from it, and then put forward the improvement measures and methods. Finally, briefly discuss the related bank bad assets revaluation.The fifth part is this article key point, namely the analysis of bank bad assets revaluation case. Through the analysis of cases, find out the value type of the bad assets and to select the corresponding assessment method, and finally through a series of assessment process to obtain the final assessment results. Case analysis includes four parts of the theory, and applying it in the actual operation shows the specific process for bad bank assets revaluation in the actual operation, thus reaching the theoretical knowledge with practice.