Non-performing Assets Of Commercial Banks To Resolve Precaution

The much higher inferior asset ratio of our national commercial banks is one of the obstacles to their existence and their development. This paper, in the view of the current situation and character of the banks' inferior assets, states that a large number of inferior assets contain huge crisis to the banks and even to the whole national economy. On the foundation of deeply analyzing of the various reasons of banks' inferior assets and referring from abroad banks' experience and inspiration of eliminating banks' inferior assets, it points out that it should be depended on the three parts' coordination of the government, the enterprise and the bank. It also states that the reorganization of banks' inferior assets should be connected with formulation reform, enterprise rebuilt and capital market construction, so hat we can really eliminate the stock of inferior assets and prevent its increase . This paper carries out a theory and factual proof exploration in the forms of changing assets into securities, such as the prevailing 'debit-transform-into-bond', and points out that, in order to eliminate banks' inferior assets, we should foster capital market, develop direct finance and provide an active medium to the debits reorganization between banks and enterprises. At last, the paper makes an analysis of loan risks and adopts the methods of associating indistinct mathematics theories with experts' points, to enhance the operation and the factuality of the defense of loan risk extent. And it tries to provide a useful reference for national commercial banks to eliminate and defense their inferior assets .