A Case Study On The Disposal Of W Non-performing Loans

The disposal of non-performing assets is an important entry point to promote national economic stability and enhance confidence in economic development.It can not only effectively buffer financial risks,but also avoid the impact of concentrated financial risks on the macroeconomy.Through effective mergers and acquisitions,invigorate the stock assets,explore and enhance the use value of assets,optimize the allocation of resources,is conducive to enhance the vitality of the real economy and the power of sustainable development.There has been an increase of potential NPAs in non-financial agencies as the economic growth of China slowed down in recent years,and financial asset management firms thus started to conduct innovative business operations dealing with NPAs of non-financial agencies to cater to the market demand.With a wide range of policies covering this issue,there are some unique features to be noted in the management of NPAs of non-financial agencies,including the wide range of industries involved in such business operations,long disposal durations of NPAs,low rates of return,and low asset quality,which all account for the demanding requirements to be complied with by financial asset management companies in this field,especially in terms of asset and risk management,making it essential for these companies to conduct researches on non-financial debts and to enhance their ability to manage risks.This dissertation,taking the perspective of financial asset management companies,offers analysis and researches on effective practices to mitigate project risks when dealing with and acquiring NPAs of non-financial agencies.At the beginning of this dissertation,the author gives an overview of the background and significance of studying risk control on NPAs of non-financial agencies and provides an introduction of tentative research methods and previous theories.Then taking the example of a financial asset management company who purchased W non-performing receivables.The dissertation introduces the status of the project and main measures used to identify project risks and further expounds the process and results of identifying risks of the project.With a study on risk control practices in a case where a financial asset management company purchased the W NPLs,this dissertation contributes to theoretic researches into risk management in the purchase of NPAs of non-financial companies by financial asset management companies.The studies and analyses on the potential risks that companies might encounter while conducting such business operations provide systematic and scientific management methods and substantial practices to prevent risks in similar projects.During the process of business innovation,the core competence of financial asset management companies can be cultivated and boosted with effective risk prevention measures.