The Rules For Dealing With Non-performing Loans In China

This project introduced the activities of Chinese commercial bank resulting in its low quality loan assets and the specific problem of the Chinese state-owned banks, and the experience of some European countries, which have the similar problem with China. Indicated the problem of the performance theory of the non-performing loan in the Chinese banks. Analysed and compared the effect of dealing with non-performing loans by bank and by Asset Management Corporation via mathematic model ,and presented result and advice of policy.At the end, indicated via mathematic model that the key measure to deal with non-performing loans is to build a company structure with clear information systems and clear property right ,at the same time presented some detail plan of dealing with China problem loan.