Research On The Valuation Of Commercial Bank's Non-performing Assets Based On The Value Classification

Historical experience shows that the accumulation of non-performing assets of commercial banks is an important cause of financial crisis.Since 2015,with the increasing pressure of economic downturn,both the balance of non-performing assets and the ratio of non-performing assets of commercial banks have increased.In order to solve the problem of non-performing assets,it is necessary to properly dispose of non-performing assets,of which the evaluation of non-performing assets is the key process of disposal.Through the literature review,it is found that the current research on non-performing assets mainly focuses on the causes and disposal of non-performing assets,and there are relatively few articles on the evaluation of non-performing assets.Therefore,this paper studies the value evaluation of non-performing assets.Firstly,the concept of non-performing assets is described in detail.Secondly,the characteristics of non-performing assets,the form of value of non-performing assets and its path of realization are analyzed.It is hoped that the value evaluation of non-performing assets can open up a new path and continuously optimize the domestic evaluation mechanism of non-performing assets.At present,most of the non-performing assets of commercial banks are compound non-performing assets with mortgage and guarantee.The recovery value can not be examined only from the perspective of creditor's rights.First,from the form of non-performing assets,compound non-performing assets include both property rights of non-performing assets and creditor's rights of non-performing assets.Secondly,from the source of repayment,the compound non-performing assets include both the part to be borne by the main debt enterprise and the part to be borne by the guarantee enterprise.Third,from the risk level,the different forms of compound non-performing assets and different repayment sources of the part of the corresponding risk level is different.For this kind of assets,the traditional evaluation methods have some limitations.Among them,the credit evaluation method for the calculation of financial indicators,too dependent on the quality of corporate financial statements,the lack of consideration of non-financial indicators.Delphi method need to hire experts generally higher costs,and by the level of experts and the number of experts selected restrictions.The transaction case comparison method has higher requirements for the transaction activity and information disclosure level of the non-performing asset transaction market.However,the liquidation assumption of this method is too strict,and it is more suitable for the enterprises that are on the verge of bankruptcy.If the enterprises are only in temporary difficulty in operation,the evaluation result will be underestimated seriously.In order to solve the problem of the limitation of the traditional evaluation methods,this paper puts forward the general idea of non-performing assets evaluation based on value classification.According to the degree of risk recovery,the value of non-performing assets is divided into the lowest recovery value and uncertain risk recovery value.For the lowest recovery value,it mainly comes from the lowest realization value of the mortgage and the lowest recovery value of the creditor's rights under the condition of enterprise bankruptcy liquidation.For the uncertain risk recovery value,mainly in the enterprise bankruptcy liquidation conditions,but also recoverable value.This part of value is related to the repayment willingness and solvency of the enterprise,that is,the part affected by the loan enterprise and the part affected by the guarantee enterprise,and needs to be further divided into two categories for separate calculation in the assessment.This article uses the analytic hierarchy process to this part of value,the construction target model carries on the estimate.In this paper,the case of GH company NPL assessment of the value of the above ideas for verification,and finally found that the final evaluation results and the actual value is not much difference,but slightly value-added.This shows that the idea can withstand the test of practice,value-added reason is that the idea of the value of risk recovery grasp more accurate.The innovation of this paper is that the value of non-performing assets is divided into minimum recovery value and uncertain risk recovery value,that is,the value lower limit and value upper limit.Such classification is not only helpful for commercial banks and other institutions engaged in non-performing assets to accurately assess the value and risk of non-performing assets,but also helpful for assessors to adopt different assessment methods for different types of value so as to make the assessment results more scientific and reasonable.In the aspect of debt repayment willingness,this paper considers two factors: credit record and default cost,which improves the accuracy of PRV evaluation to some extent.Because of the comprehensibility and expansibility of the idea of value classification,it can also be used in the evaluation of other complex non-standardized assets,which makes the application scope of the idea broader.