Study On Legal Regulation Of Bad Debt In Commercial Banks Of China

As a traditional commercial bank business,loans are expected to be used for the flexible use of funds.However,as a kind of credit loan behavior,the risk is an inevitable factor,in the long period of loan is not repaid loans,causing the return of funds hinder,directly affect the operation of commercial banks and thus threatens the entire financial and national economic security.Our country by the impact of the economic downturn in recent years,the non-performing loan ratio of commercial banks and the proportion of bad debts continued to show increasing phenomenon,huge debts not only to the bank's own business caused a loss,and inhibit the development of China's national economy,but also increase the government's financial pressure,and become an unstable factor in the safe operation of the financial system in China,therefore,to perfect the legal regulation of commercial bank bad debts and thus guarantee the stability of commercial bank management has important significance.At the core of the Law of the People's Bank of China and the Law of Bank Supervision and Administration.China has formulated and implemented the "general loans" and "loan risk classification guidelines","financial enterprise bulk transfer of non-performing assets management","financial management business write offs" and other normative documents.The commercial bank through the provision of future reserve to deal with bad debts risk,and through the bad identification,verification,the transfer of non-performing assets and other ways to dispose of bad debts has occurred,China has basically established a system of legal regulation of commercial bank bad debts.However,there are still doubtful risk facing the new situation of economic and social development and the reality of commercial banks,Our country commercial bank debt legal system is not perfect,and the commercial bank bad debts regulation in practice there are still many anomie.With the advancement of financial globalization and the increase of international capital flows,a large number of non-performing loans in commercial banks have appeared or appeared in many countries,therefore,financial organizations in various countries take various measures,especially through perfecting the legal system and legal protection of the effective implementation of a huge amount of non-performing loans for commercial banking system to explore solutions and also provides valuable experience for legal regulation of China's commercial banks bad debts.In order to improve the market system in China and promote China's commercial banks healthy and orderly development,our country should improve the system of examination and approval from the commercial bank lending to bad debt disposal,legal system and financial derivatives market norms,especially the bad debts should improve the management principles and objectives,legal validity and responsibility of specific the legal system.At the same time,the legal regulation of commercial bank loans must also run through the whole process of bad debt reserves,write offs etc.In addition,it is necessary to improve and strengthen the legal supervision of commercial banks' loans,and in particular,it is necessary to improve the loan supervision system of commercial banks,Focus on information disclosure of commercial banks and strengthen the social credit system,from the outside to effectively prevent bad debts in commercial banks and commercial banks to timely disposal of bad debts.