Research On Improvement Of Credit Evaluation Approach In Management Of Non-Performing Loans

The non-performing loans (NPLs) in commercial banks will directly endanger financial safety and social stability. Great attention has been given by governments all over the world. It also seriously existed in commercial banks in china. How to effectively dispose NPLs and how to precisely evaluate NPLs has become a topic to be urgently studied and explored in global financial field. Now, credit Evaluation Approach,which uses in NPLs evaluation,has some defect,so it directly affects accuracy of the evaluation , affects value-cashing of NPLs.Firstly, the thesis introduces current Credit Evaluation Approach and its base—Valuation System of National Capital Operation Performance,and find its defect at quantitative target and qualitative target.Secondly, the thesis improves quantitative target with EVA and functional coefficient method ,and improves qualitative target with Characteristic analytic approach and AHP. Last the thesis demonstrates the improved model with evaluation practice of NPLs. At the same time ,discusses the operation on controlling the increment of NPLs—construction of banking early-warning system for financial risks. At the end of this thesis,some feasible suggestions have been provided.