A Study On The Optimization Of Internal Centralized Disposal Mode Of Non-performing Assets In LW Commercial Bank

With the slowdown of China’s economic growth,the optimization of economic structure,the strengthening of external regulatory environment and the improvement of internal performance requirements of banks,the credit risk of commercial banks at all levels in China has increased significantly,the scale of non-performing assets has increased continuously,and the traditional disposal mode of non-performing loans has been unable to adapt to the development of the new situation.LW city commercial banks in the critical assets of the rapid growth of non-performing assets,affecting the normal operation of the development of the business,through the reform and innovation of the disposal mode of non-performing assets,set up a more suitable internal centralized disposal mode of urban commercial banks,achieved the phased effect of non-performing assets disposal,and also can provide reference value for other similar city commercial banks to deal with non-performing assets.In this article,it is divided into five parts.First of all,it summarizes the background,significance and research situation at home and abroad,clarifies the research ideas,contents and methods,and summarizes the deficiencies of this paper.Secondly,the Commercial banks,Non-performing assets,Centralized disposal mode are defined.Based on introduces and compares the decentralized disposal mode,external centralized disposal mode and internal centralized disposal mode,the 5 main elements also been introduced that impact the commercial banks with their non-performing assets disposal modes choosing,which contains cost,benefit,risk,property right structure and professional team.Third,it introduces the causes of non-performing assets and the reasons of choosing the internal centralized disposal mode that aim at the current conditions of explosive growth in non-performing assets before reform the of non-performing assets disposal modes in commercial banks.Following introduces characteristics of the reform LW commercial banks by using internal centralized disposal mode,which involved independent financial accounting,power and responsibility consistent in non-performing assets,roles of asset management department clearly.The mode also has 5 advantages,professional disposal methods,lower the cost,effective motivation in performance,isolation of risk,integrated disposal mode resources.Next,about the application of internal centralized disposal mode in LW commercial banks.In this mode,an asset management department similar with the intra-bank asset management company was founded.All branches shall turnover the filesand disposal rights of non-performing assets to the asset management department in accordance with the internal turnover process,and book the full amount on an accrual basis.As for the non-performing assets,it improved the efficiency of the disposal by optimizing the original disposal method,exploring new disposal approaches and examining quickly with the disposal programs.By comparing the performance before and after,the appraisal method of operating indicators in internal centralized disposal mode has come forward.Finally,a case was introduced to expound the application of each part in the internal centralized disposal mode.Fourth,internal centralized disposal mode received a positive answer according to the non-performing index change of LW commercial banks through the reform,comparison of disposal amount,and parallel comparison among the city commercial banks in the province within 2 years.However,some problems have surfaced just like weaken in risk control awareness,short in evaluating capability,lack in emergency response mechanism.It also presents suggestions on the existing issues,which cover to the strengthen risk control and management,improve the internal evaluation system,establish the emergency disposal process for non-performing assets,and optimize internal turnover procedures.The research in this paper try to provide the beneficial references for further optimization with internal centralized disposal model of non-performing assets in LW commercial banks.Other city commercial banks with same issues(non-performing assets)will be given the same recommendation to reduce the impact of commercial banks under the healthy development environment.