Research On The Value Evaluation Of Non-Performing Assets Of Commercial Ranks Rased On The Modified Credit Evaluation Method

In August 1989,the United States had created the United States asset Restructuring Hosting Company(RTC).Its main purpose was to recombine all assets of the bankrupt companies,its practice became a successful case of reforming the financial institutions around the world.In our country,the research on the value evaluation of commercial banks non-performing assets started late,4 financial asset management companies were established successively to handle all kinds of bad assets in the end of twentieth Century.With the rapid development of China's banking industry in recent years,the scale of banking industry has been expanding while the problem brought has been gradually highlighted,one of which is the non-performing assets rising year by year.In the past 2015,both the non-performing loans balance and ratio had been rising edge.Under the trend of economic structure adjustment and corporate credit default normalization,the amount of non-performing assets will be further increasing.Therefore,based on the existing environment of commercial banks,it is very important to evaluate the value of commercial non-performing assets reasonably and effectively.In this paper,we mainly discussed the specific application of non-performing assets,as for the assessment method,we studied the credit evaluation to promote the assessment method in non-performing assets valuation.The credit evaluation method used the financial index as well as non-financial indicators,the importance of non-financial indicators was highlighted.We creatively introduced entropy weight method to objectively weight each factors and used revenue method to count the recoverable value.Finally,we used a case to analysis the definite application of credit evaluation method.We found the results of non-performing assets value evaluation model,which was based on the modified method of credit evaluation,were more close to the real situation.But there were also shortcomings of credit evaluation method,as it financial-based using,all indicators were under restrictions.What's more,if case company's data collection channels were sluggish or the data collected distorted,the indicator weight may be incorrect,leading to final bias assessment results.These problems will be improved in the subsequent research.