Macro Analysis On Transition Period Of State-Owned Commercial Banks’ Non-performing Assets Disposal

Disposal of state-owned commercial banks’ non-performing assets has always been an important issue which affects China’s financial security and even smooth running of market economy. recent years, benefits from a series of significant measures has been adopted by government, banks and disposal department, the rate of state-owned commercial banks’ non-performing assets has fallen to a reasonable level. However, because of great changes of international and domestic economic situation in2008, as well as the adjustment of china’s macro financial policy, non-performing assets of state-owned commercial banks increased recently, though it’s hard to grasp. As a result, the disposal of non-performing assets has entered a crucial transition period, each domain is confronted with new challenges.The main content of this paper is how to use and improve existing legal system to fill loopholes in the old system and to solve the new problem. In this process, it is necessary to establish the concept of rule of law, adjust legal framework concerning disposal of non-performing assets, so as to find new way to solve the issue.In this article, the author uses qualitative analysis, quantitative analysis, empirical analysis, and comparative analysis and induction analysis methods, proposes to regulate market economy with reasonable use of law, and at the macro-level of applying political legal means to regulate the market economy, discuss the three major issues in the disposal of state-owned commercial banks non-performing assets. The main content is divided into four chapters:Chapter Ⅰ:General theoretical overview of state-owned commercial banks’ non-performing assets. The author defines concept of non-performing assets non-performing assets, describes the present situation of state-owned commercial banks’ non-performing assets, and analyzes on its causes and effects in detail. This lays objective foundation and offer objective foundation for the following research.Chapter Ⅱ:Brief introduction on disposal of state-owned commercial banks’ non-performing assets. The author introduces some basic methods for disposing state-owned commercial banks’ non-performing assets based on China’s actual condition, and especially analyzes on several common methods for disposing state-owned commercial banks’ non-performing assets, which provides support for solving existing problems in the field.Chapter Ⅲ:After careful analysis on these problems, taking the legal environment in china into consideration, the author points out three major issues, those are China’s central government’s budget supervision, positioning, regulation and transformation of non-performing assets disposing agencies, as well as development of local financing platform.Chapter Ⅳ:Legal considering on how to resolve the three major issues. The author introduces and draws lessons from foreign experience, proposes the solutions of the discussed problems on multiple respects.