Financial Product Design Of Local Asset Management Co To Solve The Problem Of Bank's Non-performing Assets

The problem of non-performing assets has long been the financial enterprises' headache problem in the world,especially for banks,non-performing assets of banks called "soft spot".In the 80 s and 90 s of last century,the crisis of the world banking industry was frequent.In order to solve the problem of non-performing assets in banking industry,all countries adopted targeted countermeasures from various countries' actual situations.At that time,in order to solve the problem of high nonperforming assets of banks,four Asset Management Co(the four AMC)were established to undertake the non-performing assets of banks.Then,over the past ten years,the non-performing loan ratio of banks continued to decline.Until the beginning of 2013,with the new period of China's economic development in the transformation and upgrading,the slowdown in economic growth,the problem of non-performing assets has made a comeback,and the original four AMC due to various reasons can not solve the problem of non-performing assets of the bank,the local Asset Management Co(hereinafter referred to as "local AMC")came into being.As the new mode of local government to solve the non-performing assets problem of the local place,compared to the original four AMC local AMC has some advantages in local resources,but also faces problems such as shortage of funds.So it can not apply the original disposal of nonperforming assets to this situation,we must design suitably for their own situation to solve the problem of non-performing assets of banks the innovation of financial products.Based on the case analysis of the new business model of company G designed to solve the problem of non-performing assets,this paper analyzes innovation and inadequacies of the mode and provides the corresponding improvement methods on inadequacies and a useful reference for the local AMC to deal with the problem of bad bank assets.This paper introduces the concept and background of non-performing assets of local AMC and the corresponding theoretical research and frame structure.Then it explains the urgency of the new financial product designed to solve the problem of non-performing assets of banks from the harmfulness to banks and the weaknesses and difficulties of local AMC,and that to solve the non-performing assets problem using the original way and the subsequent analysis is insufficient;then it explains the demand of G company to design new product and analyzes the innovation and insufficiency of G company's new product and puts forward the corresponding improvement of deficiencies of G's products.The last part is the conclusion.