The Case Analysis On H Rural Commercial Bank Non-performing Asset Management

For over 30 years reform and opening up,China's rural financial reform has made great achievements,but the entire financial system is still in the weak position.For the lack of financial resources in rural areas,the financial service is not satisfactory.Rural credit cooperatives,as the pillar of the rural financial system,its service is mainly oriented to rural areas,but in recent years due to the change of the rural situation and the change of the management pattern of credit cooperatives themselves,the guiding function of some policies of the rural credit cooperatives no longer exists.So,in order to improve the rural financial system,rural commercial bank arises at the historic moment.After the transformation,rural commercial Banks' non-performing assets have been declining,but compared with the commercial Banks,rural commercial banks have not done enough.In the initial stage of rural commercial banks,it is crucial for the development of the future operation of the banks to know how to effectively activate the banks' non-performing assets.Therefore,the management of non performing assets must be regarded as the current priority.H rural commercial bank is a newly established financial institution in recent years with good development momentum and rapidly expanding business scale,in the meantime,its non-performing assets are also rising up.In the statistical report of the national bank,H rural commercial bank's bad assets ratio has passed far beyond the average trade level,which has caused an widespread concern in the banking sector.Based on the H agri-businesses behavior,this paper analyzes the bank's bad assets management problem thoroughly.First,basing on the profit distribution and five non-performing assets categories of H bank,the author introduced the development status of H bank,which is mainly about the severe situation of non-performing assets.Then the author focused the reasons why H bank's non-performing assets ratio is high.The reasons can be analyzed from two aspects: one is the historical reasons,the second is new non-performing assets.After analyzing the reasons of H bank's new formation of non-performing assets,the author found that H bank had problems from the credit mechanism,the personnel quality to the problems existing in the external environment,etc.The focus of this paper is the analysis of H bank non-performing assets management from the aspects of management mode and management methods and dig out the defection and disadvantages of current management modes and methods.Furthermore,some countermeasures and suggestions are given including centralized management model and the innovation of bad assets' disposal,etc.Finally,two brief suggestions are put forward to financial institutions like rural commercial banks.The research method of this paper is the case analysis method.Through analyzing H bank's non-performing asset management,some solutions to this problem are provided,while at the same time,some experience are given to other rural commercial banks and small and medium-sized financial institutions as for reference.