A Study On Assessment Method Of Non-Performing Loans In State-owned Banks

With the further financial reformation, the disposing to the Non-Performing Loans (NPLs) of state-owned banks has coming to a key step. In the practice of disposal, assessment of NPLs becomes a challenge. As for this kind of assessment, it's mainly about creditor's rights appraisal. However there is not an agreement or regulations about creditor's rights appraisal in China. So assessors must encounter some new conditions and new problems in the period of evaluation. And there are many problems waiting us to research. This article is designed under this situation.This article firstly describes the actuality of NPLs in state-owned banks, and then analyzes the difficulty that the assessment is confronted of. By studying the value style of NPLs, the article give emphasis to the proposal that classifying the value style of NPLs is a necessity for impartial assessment, also discusses how to transform the value in market so as to realize the disposal.The article mainly studies the method of assessment. On the base of analyzing in basic condition of assessment, the article propose that the assessment system of state-owned banks' NPLs must be designed respectively by object, and then expounds operation proceeding of assessing method, and ameliorate the method of Given Liquidation Approach(GLA).After theoretical studies, the article selects two projects to demonstrate the method of Debt-payment Ability Assessment (DAA) and Creditor's Right Asset Appraisal (CRAA).In the end, the article brings forward several suggestions on assessment of state-owned banks' NPLs.