Legal Precaution Of Non-performing Assets Of Commercial Banks

Banks have always been playing an important role in the development history of every country around the world,whose significance to the economy is self-evident.With rapid development of economic globalization,capital flow accelerates around the world and capital size are expanding,thus people are concerned about its stability for which stands in the right center of global financial storm.A Wall Street journal article portrays the banking industry as "time bombs" that can trigger economic crisis of the world [1],as well as a former president of the international monetary fund,Mr.Desu Kang,who thinks next economic crisis is probably caused by bank industry.Bank industry as the center of capital world,has many kinds of risks,the biggest of which comes from non-performing assets,which not only decrease the bank asset quality and net profit but also impede the development of bank industry,so as to impact financial market growing.Therefore,this paper explicates the present situation by showing different kinds of data,and tells the risk of non-performing assets as well as its prevention measure significance,all of which constitute to the research background.Intuition comes from some scholars' perspectives about bank non-performing assets,experiences and lessons come from foreign bank non-performing asset and correspondence lawful prevent measures.In terms of the reason why non-performing asset come into being in China,we propose some lawful paths.Specifically,this paper is divided into five chapters:To begin with,data shows the current status of non-performing assets of banks in China,and then explicates all kinds of non-performing risks coming from banks themselves,national tax,credit system and economic security of the society,followed by significance of banks preventing non-performing assets in terms of the above risks.The first chapter,we sort out reasons that non-performing assets come into being by corporate credit issues,the presence of the channel business,bank internal control and laws and regulations,etc.The second chapter analyzes bank internal control misconduct,whose reason contains that there is no independent corporate representative and imperfect of management.We refer to the experience of bank internal management of America,and propose precautionary measures including making management and organization structure better in the bank organization structure and management level.The third chapter analyzes the corporate credit issues,which contains bad asset for lack of credit and dodge bank creditor.In the basis of bankruptcy law in the US and Japan,we propose correspondence lawful measures in the aspects of completion of bankruptcy law and social credit system.In the fourth chapter,we analyze channel business,which combines cooperation with bank and bridge loan so as to measure the influence of bank non-performing asset,and we propose correspondence lawful precautionary in the supervisal level.