Program To Solve The Problem Of Non-performing Assets Based On Restructuring

Finance plays a key role in modern economy.Suffered from global financial crisis many times,financial systems in many countries are now plagued with non-performing assets.How to deal with the non-performing assets(NPA)in banking industry has become an universal problem that draws extensive attention of many governments and all sectors of society.With the slowing down of national economy,financial risks like non-performing assets appear in a large scale,especially in coastal area of East China and some industries like steel and shipbuilding.Also,there are inevitable risks in export-oriented industry,local financing platforms and real-estate industry.Generally speaking,the banking industry is faced with most non-performing assets.How to reduce financial risks and stop their expansion is related to the security of commercial banks and the substantial economy.Founded by the State Council in 1999,the four state-run asset management companies(AMC)Cinda,Huarong,Orient,Great Wall have been designated to deal with non-performing assets in state-owned banks and have been making economic and social benefits.However,because of some shortcomings of our market and law systems,some problems came out in pace of disposing activities.They slowed down the disposal speed and cut down the disposal efficiency.Bad assets disposal and operation of the financial asset management company has been a hot spot in the theoretical circle in China for recent years.The studies more focused the main problems on the analysis of the causes and harms of the non-performing assets,The comparative study of disposal mode of non-performing assets between the China banks and the foreign banks,The main way and method of how to dispose the non-performing assets in our country,special study of all kinds ways to dispose bad assets,etc.This article mainly studied company E which gets a government background,in the viewpoint of the company,combine theory with practice,proposing a new solution by using the assets reorganization method to solve the problem of non-performing assets government,through detailed description and analysis on the problems,proposing a practical and feasible solution,can not only solve the problem,also hoping to help asset management companies in disposal of non-performing assets in the practice.This paper divided into three parts: the first part is company E describe the problem of non-performing assets of company B,including the analysis of E's money for the company's business,company operation and financial situation of B,E goods firms for the formation of non-performing assets of the company B;The second part introduced the solution for the problem using the way of restructuring;The third part mainly includes the plan implementation of the rationality of theargument and possibleproblems and their countermeasures.