Non-performing Loans Value Evaluation Research Based On Block Calculation Model

At present, China's economy is facing significant downward pressure. Affected by the economic cycle, increasing the size of non-performing assets contains a huge potential financial risks endangering our economic system. So how to dispose of non-performing assets, and resolve the risks, it is extremely important. In the course of the disposal of bad assets, the key issues is the price development. Assessments issued by asset appraisal industry is the basic reference. Apparently, real and reasonable assessment is the basis for pricing. So far, the results of theoretical research on non-performing loans is small and can't meet the urgent needs of practice. Existing methods for the assessment of non-performing loans each have their own limitations, the use of very harsh preconditions. Practical guidance is not strong. Also, when using an existing assessment methods, factors that affect the value has not been fully considered, thus affecting the accuracy of the assessment results. To change this situation, I will be looking for a new perspective to assess these non-performing assets.This paper, focusing creditor class bad assets assessment methodology issues this study, analyzes the existing debt class bad assets valuation methods and problems. Divided the value of the claim of non-performing assets into two parts, one is the lowest pessimistic and determined realizable value, another is the uncertainty of the recovery value, affected by many factors; Block calculation model constructed by the author can more accurately assess the value of the NPLs. In the block calculation model, the first part will evaluate the lowest pessimistic realizable value by assuming Settlement Act. The second part will assess the value of uncertain portion. Financial factors and non-financial factors are taken into account by AHP. Finally, sum returns the value of non-performing assets. By using the block calculation model, the authors hope to provide a new thinking and new perspectives for the non-performing assets assessment methodology, thus promoting the healthy development of Chinese NPLs assessment and disposal practices.