International Comparative Study On The Problem Of State-owned Commercial Banks' Bad Assets

NPAs (Non-Performing Assets) is a world wide issue. In the course to connect with international finance industry, our state-owned commercial banks have many serious non-performing loans problems. This problem seriously hampered the development of our country's financial system and macro economy. So some steps must be taken as soon as possible.Three things are discussed at the beginning of this dissertation: the definition, the causes of NPAs and the quantity and quality of the NPAs, which give a boundary of this research.In order to prevent and dispose the NPAs in the state-owned commercial banks, we should learn the experience from other countries. Six countries are selected as research subjects. They are US and Japan which represent the developed countries; Korea as a new and developing economy country; Poland is an economy turning to another direction representative; Thailand is the first country assaulted by Asia financial crisis and Argentina acts as an unsuccessful NPAs treatment country. For example, US, Poland, Japan and Thailand have experience in setting up special laws in this field; Korea, Thailand and Poland have experience in the reconstruction of the enterprise. And there are also a lot of skills and technologies for reference.New Basel Capital Accord of 2004 stipulates that the minimum capital is an essential issue and puts forward that the bank's sufficiency rate of capital should be 8% at least. Our stated-owned commercial banks' sufficiency rate of capital are not sufficient, NPAs is serious obstacle of increasing their sufficiency rate of capital. Under the New Basel Capital Accord, the methods for increasing our state-owned commercial banks' sufficiency rate of capital are good reference for dealing with their NPAs.By learning from the experiences and lessons of foreign countries in dealing with NPAs and the methods for increasing our state-owned commercial banks' sufficiency rate of capital, combined with the actuality and problem appeared during deal with our state-owned commercial banks' NPAs, I make some policies and advices for our countries to solve the problems of non-performing loans.In order to prevent and dispose NPAs, the relative advantaged circumstance should be created. Such as, perfecting the laws and regulations accordingly, developing the capital market, and reforming basically administrative system. In the course of preventing and disposing the NPAs, it needs Institutional Innovation, Technological Innovation and the work in the all round way to prevent and dispose the NPAs effectively.