Research On The Disposal Of Non-Performing Loans Of Chinese Commercial Banks Through Cross-Border Asset Trading

Through analysing and studying the current solution practice of non-performing loans of commercial banks,drawing lessons from overseas experience,this paper intends to explore new ways of solving non-performing loans by using new technology and platforms.Such technology and platforms will make it easier for overseas investment banks and other financial institutions,individuals to invest in non-performing loans of commercial banks in China.This paper firstly introduce the domestic non-performing loans disposal measures:debt transfer,debt-for-equity,debt restructuring,asset-backed securitization and so on.Then the paper analyses the characteristics of different solutions,including the advantages and disadvantages and applicable situation,etc.Secondly,factors that influence non-performing loan ratio of banks are analyzed in a quantitative way so as to verify the important hypothesis of this paper.Thirdly,through the introduction to the experience of overseas non-performing loans disposal the paper tries to figure out the advanced method which is applied to the non-performing loans market in China;Finally,the paper draws conclusion by putting forward a way of disposal of non-performing loans of commercial banks of China,that is cross-border assets transaction using Hongkong or e-commerce website as platforms.The paper also discusses the structure,regulatory environment,challenges and potential solutions of cross-border assets trading in order to solve the bad debt problems which the Chinese banks are now facing.