Research On Regulations On Bad Assets

Bad assets can lead to finacial risks which directly influence the finacial safetyand development. In East Asia, the enterprises depend on the banks as a mainfinancing channel, which may cause the hidden risks of bad assets. The hidden hazardhas not only resulted in the financial crisis in Korea, but also restrained the economicdevelopment in Japan. More importantly, it may directly influence the effect of theSOE reform in China. So it is of much importance to research the regulations on badassets.Based on the current regulations in China, Korea, and Japan, the dissertation , ina comparative view, analyses the connotation and classification of bad assets in orderto define the boundary of the term "bad assets" which may affect the design of the badasset management regulations.Because the bad assets are usually managed by the professional bad assetmanagement companies, the key element is to discuss about the legal rules regulatingthe companies. The dissertation deeply analyses and compares the differences of therelated legal systems in China, Korea, and Japan, and the reasons of the differences.The analyse and comparison involves the several aspects of the bad asset managementcompanies including the organization models, legal basis, their aims, business scope,corporate governance, and the supervion systems, etc. On the basis of the discussion,the writer analyses the organization model of the Chinese BAMC, points out theircharacteristics and backgrouds.After the analyse , the writer researches on the perfection of the relatedregulations about Chinese BAMCs. In this part, the writer makes a suggestion thatChina should standardize the regional bad asset management. The different standardsof the bad asset classification in China, Korea, and Japan can serve as references foreach other. China can benefit a lot from the advantages of the Korean and Japanesesystems. Finally, the writer makes some suggestions on the related aspects.