Disposal Of Non-performing Assets Of Commercial Banks In Korea And Its Enlightenment To China

Assets of commercial banks are present in more or less non-performing assets. These non-performing assets will affect operating income Commercial Bank, harm to its normal operations. In the case of a country’s commercial banks non-performing assets rising, the country’s financial system and even the existence of the national economy has potential risks. Currently, commercial banks non-performing assets and disposal issue has caused widespread concern around the world, theorists in this field also have in-depth study and discussion.After the Asian financial crisis in 1997, the Korean commercial banks non-performing assets of the outbreak, a considerable part of commercial banks and companies on the verge of bankruptcy, the disposal of non-performing assets is imperative. In order to maximize the fastest speed disposal of a large number of non-performing assets of commercial banks, the Korean government established the Korea Asset Management Corporation(KAMCO: Korea Asset Management Corporation) unified disposal of bad assets. Practice has proved that the implementation of the disposal of non-performing assets of the Korean model and all associated supporting measures to ensure that the disposal of non-performing assets of commercial banks efficiency and quality, to become international success stories. This paper focuses on the background of the Korean banking sector non-performing assets, and disposal of industrial reasons modes are analyzed systematically, and to dispose of non-performing assets of China’s commercial banks provided Experience and Enlightenment.Second chapter introduces the theoretical basis of non-performing commercial banking assets disposal. First elaborated on the definition of non-performing assets of commercial banks and classification. After analyzing the non-performing assets of commercial banks theoretical basis for the generation and disposal, Chapter III of Korea commercial banks non-performing assets from the background, analyzes the current situation of non-performing assets were to identify and analyze the Korean commercial banks non-performing assets generated macro and micro the reason. The fourth chapter is the core section of this article focuses on the disposal of non-performing assets of commercial banks in Korea three modes: with KAMCO-led unity disposal, disposal of commercial banks and internal corporate restructuring plan. KAMCO Dealing Model and specific practices are introduced and compared. Specific practices were: bulk sales, the establishment of joint investment companies and individual finishing disposal. The chapter concludes also pointed to the emergence of commercial banks on the disposal mode Korea issue. The fifth chapter of this paper will examine foothold back to China, the first brief analysis of the non-performing assets of commercial banks in China the status quo and disposal problems, and then summed up the experience of enlightenment bad disposition of assets of commercial banks in Korea to China. The last chapter, came to the conclusion of this article and how to improve China’s commercial banks non-performing assets disposal capability, put forward relevant suggestions.Stones from other hills may serve to polish jade. When performing assets Pattern and Practice Commercial Bank of China, Korea valuable lessons of history and experience in the field has a certain significance.