Exploration, Development Direction Of China's Financial Asset Management Companies

Raising the ProblemIn the late 1980s, with the non-performing loans of commercial banks all over the world continuously accumulating, the management of the commercial bank itself and the stability of financial economy were badly affected. The non-performing loans of banks have become a world problem .All the governments have paid great attention to it and adopted avail measures to handle it. In the 1980, financial asset Management Corporation develops quickly. Developed Countries, transitioning countries and the newly arisen market economy countries all set up such companies to handle the non-performing loans and the similar organizations still exist They achieved good results and gathered plentiful experience.The non-performing loan in China is still a big threat to China. Our country drew lessons from the property management company mode internationally widespread adopted in the world including RTC in America. So the four financial asset management corporations: XINDA, HUARONG, CHANGCHENG and DONGFANG were established in 1999 handling the non-performing loans of state-owned commercial banks. The function of our country's financial asset management corporations is to disperse the financial risk, to support the enterprise reform and keep intact the state-owned property.With the development of assets disposal, the assets scale and quality are continuously decreasing. What Chinese Financial Assets Management Companies should do in advance and whether the State Department's ten years limit should be executed or not are not only the puzzle of employees but also the main content of financial system innovation. As pointed out in the report of Session of the Sixteenth Central Committee of the Party and the National Economic Conference on October 14, 2003,...