Disposal Of Non-performing Loans Of Rural Credit Cooperatives Research

The non-performing loan problem is a difficult problem which faced by financial institutions, it is one of the main risks which threat to financial institutions. It is an important financial issue for us to resolve non-performing loans, which has been a heavy burden for China's rural credit cooperatives to develop further. For a long time, there is the lack of proper credit asset management system, coupled with the backward of our management system, the poor credit environment, the historical burden and the policies of state credit, the rural credit cooperatives generated a lot of bad loans, which severely reduced the efficiency benefits and the endorsement in rural areas.This article based on the disposal of the theory of non-performing loan, as an example, A county credit union, which we can analyze the status and the reason of their bad loan came, which have had a more systematic analysis of their status and causes of non-performing loans and have had a depth analysis of the way how to deal with this problem. In this point, in the summary of foreign commercial banks the way they deal with bad loans, we can putting forward the principle of disposal of bad loans and made operable countermeasures.From this study, we can concluded that: (1) With a larger total amount of non-performing loans of rural credit cooperatives in A county, an the contrary, which showed with a decreasing trend; The non-performing loans of rural credit cooperatives in A county, dispersed in the individual industrial and commercial households, private enterprises, joint ventures and rural SMEs and Agricultural Bank of China, rural credit cooperatives which running by the economic entity; Varieties for the credit bad loans; the lower ratio of capital adequacy, the less capacity to resist risks. (2) The main issue of A county of disposal of bad loans of rural credit cooperatives is in a single way, the low-tech, the hard realization of foreclosed assets, the higher disposal costs, the administrative intervention and policy's "Vacancy" which lead to the disposal of many obstacles. (3) The disposal of non-performing loans of rural credit cooperatives should be followed in treating the symptoms, focusing on the main point, the combination of the disposal of non-performing loan and the turnaround corporation, the principle of combining changes between the disposal of bad loans and the rural credit mechanism. (4) We can proposed the securitization of bad loans and the selling of bad loans, making the contract entered into asset management, debt to equity, etc. It is the way the rural credit cooperatives should draw on the disposal of bad loans.