Study On Institutional Reason And Measure About The Non Performing Loans Of Chinese State Commercial Bank During Transition

In 1997,a great deal of Non Performing Loans (NPLs) in bank system of southeast asia result in asia financial crisis, which make people pay attention to NPLs in commercial bank. In china, Because of the transition from planning economy to market economy, create a lot of NPLs, which will affect economy development dramatically sometimes. The experience of other economic transition country have proven that whether a country can solve the problem of NPLs smoothly will affect the transition process. So people focus on the reform of the State Commercial Bank (SCB). Therefore, it is necessary to study the reason of NPLs of SCB and learn the lesson of the SCB reform of other economic transition country.This paper based on China transition background, according to the character of Chinese politics and economy, use the analysis method of institutional economics, confirm institutional aspect is the most important factor, try to find out the reason of NPLs of Chinese SCB, then use the methods of Neoclassical economics to develop a interpretation models. After that, study on the experience of other economic transition country (Hungary, Poland and Russia). Finally conclude the reform of Chinese SCB should focus on the whole economic transition system, clear the responsibility of government, state-owned company and SCB, and improve the management of SCB.