The Research On The Value Assessment Methods And Application Of Non-Performing Assets Of Banks

Influenced by the decline of potential economic growth,the influence of old and new industrial transformation,and the entry of the Federal Reserve into the interest rate increase channel,the risk of the domestic financial system rose sharply.By the end of the third quarter of 2018,the non-performing loan rate of commercial banks reached 1.87%,which is the highest level since March 2009.The growth of non-performing assets of banks leads to the decline of bank credit.The credit risk and default risk brought by non-performing assets of banks will induce the inherent liquidity risk of banks,which will have a strong impact on China’s financial system and seriously affect the smooth operation of China’s economy.In view of the above grim economic situation,the CBRC issued a special paper to encourage departments to actively carry out the disposal of non-performing assets and tap the potential of recovering and cancelling non-performing assets.In recent years,with the continuous development of the financial industry and the gradual deepening of the financial system reform,non-performing assets valuation business is also rising rapidly.Under this background,this paper carries out research on the practice of non-performing assets assessment in banks.On the basis of combing the relevant theories and combining the attribute characteristics of the underlying assets,a new non-performing assets valuation model is created,aiming at improving the disposal effect of non-performing assets and maximizing the recovery of benefits.At the beginning of this paper,the basic theory of non-performing assets assessment and the theory of non-performing assets value are mainly introduced.Secondly,the details and applicability of the valuation methods of the current four general non-performing assets assessment methods in the industry are elaborated in detail.Combined with the inherent shortcomings of the traditional valuation model and the new requirements of the current nonperforming assets disposal and evaluation,the price of non-performing assets is put forward from the perspective of value composition.Value is a valuation idea consisting of the basic value of non-performing assets and the compensation value of non-performing assets.Among them,the basic value is based on the hypothesis of simulated liquidation,and is calculated on the basis of the stock assets and debt structure of the debt enterprise.The compensation value is the value added value above the basic value obtained by anticipating the operation prospect of the debt enterprise.The concrete calculation is carried out in the form of combining the analytic hierarchy process with the two-way valuation model,and then a non-performing asset is calculated.The case of disposal evaluation is used to test the valuation model.On the one hand,this method enlarges the scope of application of traditional valuation model and extends it to debt enterprises which are still in the state of continuing operation or uncertain in future business prospects.On the other hand,this method takes into account more non-financial factors affecting the disposal and recovery of non-performing creditor’s rights,such as business prospects,ownership structure and management characteristics,so as to optimize them.The post-valuation model is more suitable to the actual situation of disposal of non-performing debt of banks,with more flexibility and accuracy.In the end,this paper puts forward three suggestions on the problems existing in the current non-performing assets disposal and evaluation of banks in the industry: firstly,we should constantly strengthen the research on the theory of non-performing assets appraisal to guide the practice of non-performing assets appraisal with perfect theory;secondly,we should take additional consideration of non-financial factors in the establishment and optimization of evaluation model.Finally,we need to strengthen the overall construction of the evaluation industry,improve their professional quality and competence through regular training and relevant policy formulation,and mobilize the enthusiasm of practitioners in the evaluation of non-performing assets.Only through the coordinated efforts of the whole industry can the assessment of non-performing assets of banks be dealt with more scientifically and promote the development of the economy.