Study On Disposal Of Banks’ Non-Performing Assets Risk Management

Currently, the non-performing assets are increasing due to the unreasonable structure and imperfection of risk management of Chinese commercial banks. The non-performing assets of banks results in the decline of both of available capital and profitability of banks, then leads to the losing of economic vitality, which, as a result, will seriously restrict the development of Chinese economy in macroscopic view. Therefore, how to liquidize existing non-performing assets is the important problem faced by financial industry and macro-economy.In the beginning, the mode of bad bank asset securitization at home and abroad is introduced and the theory and framework of risk management in bad bank asset securitization are comprehensively discussed in this paper. Subsequently, taking ABC Company as example, its risk management in bad bank asset securitization is analyzed in detail with integration theory with practice by case studying, which includes below points. First of all, the procedure of bad bank asset securitization in ABC is introduced. Secondly, the risk architecture of disposing non-performing assets is revealed and the specific methods of risk identification are described. Thirdly, the problems existing in risk management of ABC are analyzed in depth from the aspects of environment controlling, risk handling, information and communication. Last but not least, suggestions on measures to optimize risk management of ABC are put forward from the aspects of improving risk management environment, optimizing risk handling principles, enhancing risk management informational level on risk management.This study provides reference for optimization the framework of risk management in non-performing disposal within the same industry, and is helpful to revitalize the banks’ non-performing assets as well, which in return, will promote domestic economic healthy and sustainable growth.