Commercial Bank Assets Management

Currently, Chinese economy is not only confronting with new trend of global economy but also facing tightening domestic economy situation and decreasing of GDP increasing rate. The Chinese banking industry is facing market-based interest rate orientation, further economy reform, and financing disintermediation etc. Meanwhile, Chinese banking industry also experience the difficult situation of the large quantity as well as high ratio of non-performing assets. It is a hot spot that how to solve the current NPA situation. The control of non-performing assets is a key point in bank risk management. Without proper management, bank will suffer from catastrophic loss if it is out of control in non-performing asset,. The management of non-performing assets reflect bank's capability in asset management and mean a competitive advantage to itself. Obviously, the detail analysis of non-performing assets is an unavoidable trend. At the background of Chinese economic structural adjustment, the forming of non-performing asset is complex, distinctively with the economic cycle. Therefore, it is necessary to analysis the forming of non-performance assets and the way to cope with it.For studying non-performing asset problem, it is necessary to specify a proper subject. Chinese Merchants Bank (CMB) is a share holding bank with excellent performance and in the leading place of studying bank transition problems. Meanwhile, CMB has gathered a lot of experience in non-performing assets disposing and also has merits in economy prediction. Studying the way CMB dealing with non-performing assets has far-reaching and referential significance for commercial banks. Non-performing assets are the periodic output of social development. For Finding out a feasible approach to deal with it, we should establish on previous accumulated experience.This essay gathers CMB related service information and digs out practical reference to explain how CMB deal with non-performing assets and the way non-performing assets are formed. This essay also proposes series of solution in non-performing assets disposing based on the combination of current situation and the cause of non-performing assets summing up by both data and qualitative analysis method at the background of "dual increasing". This essay aims to provide a practical referential to commercial bank in non-performing assets disposing. Economic Cycle is unavoidable, but the bank should keep up with the pace of economy and try to control the quantity as well as the ratio of non-performing assets. The bank should cope with the non-performing assets as per to the reasons of happening. The essays will classify the non-performing assets according to reasons of happening and give its corresponding suggestion on how to deal with it. By utilizing a fast and effective way in non-performing assets disposing to ensure the stability and profitable of bank operation, we can promote social resource utilization and guarantee stable social economy development.