Legal Effect Of Transfer Of Non-Performing Loans Of Banks In China

With the macroscopic economy stepping into the high-speed growth stage and the structural adjustment deepening,the balance of Non-Performing Loans(NPLs)of commercial banks in China has continued to rise.In the current round of NPLs growth cycle,the traditional ways of dealing with the NPLs mainly include independent settlement,loan upgrades,debt relief,bulk transfer,etc.The urgency to strip of NPLs continue to strengthen and the disposal measures are increasing,but the most-preferred measure is still the way of batch transfer.The market of NPLs transfer is divided into primary and secondary market.Primary market participants mainly involve the major commercial banks and licensed asset management companies,subject to special financial regulations and policies.When the NPLs are circulated to the secondary market through transfer,then the main body of the transaction is the general asset management companies or other social investors,subject to the General Principles of Civil Law,Contract Law and other laws.This thesis will focus on the question of the effect of the bank as the original creditor transferring its own non-performing loans in primary NPLs market of China.Concerning the transfer of NPLs claims,the first issue involved is the transferability of the claims.Because if the NPLs are non-transferable,the practice of all the operations will lack the legal basis.The object of NPLs claims transfer is NPLs claims.Because loans are financial claims regulated by special financial regulations,different from general claims.Although the NPLs are only private rights of commercial banks,they will relate to the social public interest,thus most countries in the world will regulate in this aspect.Secondly,there is controversy in the practice on the subject qualification of NPL creditor's rights transfer.Commercial banks and licensed asset management companies are the qualified bodies of NPL transactions.It is controversial whether the social investors' private capital is eligible for transaction or the disposition of the subject.Thirdly,the transfer of NPL claims may involve the "non-transfer terms" agreed between the original creditors and the debtor which will have a certain impact on transfer of NPL claims.Finally,a valid transfer of claims must go through the procedure of "notifying the debtors" before it becomes valid against the debtors which is an indispensable part of creditor's rights transfer.In this paper,the study of the issue of NPLs is divided into four parts.The first part begins with concepts,models and characteristics of the transfer of NPLs.This part introduces the concept of the NPLs and the patterns of NPL market,distinguishes between primary and secondary market,and puts into the construction of NPL creditor's rights transfer.The second part mainly focuses on the issue of NPL claims,and analyzes the problems and suggestions of our country in this regard through the relevant laws and regulations of each country.The third part mainly focuses on the transferee of NPL claims,and analyzes the feasibility of the assignment of NPL creditor's rights in China's private capital from the practice of assigning NPL creditor's rights in foreign countries.The fourth part mainly focuses on the question of the effect of the "non-transfer term" on NPL creditor's rights,and analyzes the different legal provisions of the "non-transfer term" from the analysis of the value of the "non-transfer term",and then leads to the aspects of the provisions and improvement suggestions.The fifth part mainly deals with the comparative analysis of the validity of the NPL creditor's rights issue,and draws on the comparative analysis of the provisions of China on the effect of the creditor's rights on the debtor.