Study On Optimized Management Of Writing-off For NPAs From SP Bank

Non-performing assets(NPAs)deposit substantial threats to our financing system and economic environment.And so,how good it is in control of dealing with the bad assets,turns out to be the core of the management of NPAs.Therefore,what commercial banks do is to keep good assets through operational strategy,maintain stability through risk management and clean up bad asserts in the hope of minimal efforts.There are,in general,six forms in disposal of NPAs:cash collection,assets transferring,bad assets securitization,repaying with non-cash assets,debt-to-equity exchange,and write-off.The last one,while the unprosperous trade market has little chances in returning a good price,has come to be the only autonomous way in independently clearing the non-performing assets up from almost all commercial banks.This paper firstly refines the management of writing off NPAs into a three-dimension frame on the basis of certain theories and regulations related and figures out a superior framework instead in order to deeply improve SP’s effect in writing off problem assets.Secondly,a brief content of SP’s status in quo has been introduced and an evaluation has been made by using DEA model in efficiency measuring,which makes up of three decision-making units:business workflow,exercising effect and level of technology.Thirdly,reasons have been studied that it is the redundant capacity that influences the efficiency in SP’s management of write-off.Finally,according to the results,this paper makes an attempt in doing an optimization by reorganizing the three dimensions from the superior framework.Again,an evaluation has been made out by drawing a comparison bewteen the newly optimized units and the old and the validity of this optimization has been indicated.