Study On The Evaluation Of Commercial Banks' Creditor's Rights Non-performing Assets

In recent years,the disposal of non-performing assets in China's commercial Banks is developing towards diversification.How to accurately evaluate the non-performing assets and choose which method are particularly important.Non-performing assets of commercial Banks can be roughly divided into three types: creditor's rights,equity rights and physical rights of which more than 70% are creditor's rights.In the three forms,equity assets account less and the majority of them are converted from debt assets and the evaluation value generally be determined by the book value.In view of the physical asset,it can use traditional evaluation methods like evaluate market method and cost method.Relatively speaking,in the three different forms of non-performing assets,creditor's right is the most difficult to evaluate.Because the core of its assessment is the enterprise's solvency,which is affected by many factors.So how to identify and quantify these influence factors is the focus of this article.This paper starts from the background of the formation of non-performing assets in China's commercial Banks.Firstly,it introduces the current domestic and foreign researches on nonperforming assets in commercial Banks' creditor's rights and relevant theories through literature review.At the same time,it analyzes the current situation of non-performing assets in commercial Banks' creditor's rights in China according to the relevant data at home and abroad.Secondly,this paper not only discusses the limitations of the three traditional methods in the evaluation of creditor's rights non-performing assets,but also makes a comparative analysis of the commonly used methods in the current creditor's rights non-performing assets from the aspects of implementation steps,scope of application,advantages and disadvantages.According to the analysis,the hypothetical liquidation method is more applicable.Next,In order to make up for the lack of consideration of non-financial information in the hypothetical liquidation method,consideration of non-financial indicators are added to the hypothetical liquidation method model and the article makes an empirical analysis by collecting a large number of case data to choose the non-financial factors that can affect the recovery value of non-performing assets and uses the analytic hierarchy process to determine the weight of the selected non-financial factors.Finally,this paper applies the optimized hypothetical liquidation method to a specific case to test its applicability,and puts forward some feasible suggestions for the future development of China's commercial banks' creditor's rights non-performing assets in order to provide some reference significance for it.