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The NPL recovery approach analysis

Author: Anonymous From: www.yourpaper.net Posted: 2009-04-02 14:17:58 Read:
Wave of financial liberalization sweeping through the world since the 1980s, has accumulated a lot of questions, and direct damage to the stability of banks and security, resulting in one of the most important problems of the banking crisis is the occurrence of non-performing loans, non-performing loan problem has become distress and bondage the shackles of the countries in the development of financial institutions, non-performing loans just as a malignant tumor constantly eroding the capital of commercial banks and endanger the stability of the financial sector operations, the Bank should strengthen the study of non-performing loans, to speed up the processing of non-performing loans to promote banking healthy and smooth running.
First, the status of non-performing loans
So-called bad bank loans, mainly referring to the banks can not recover normal or uncollectible loans. The five taxonomy of CBRC common international classification of loans, subprime lending class, doubtful loans class, loss-loan in 2007, China's commercial banks 1.26842 trillion yuan, the balance of non-performing loans to total loans ratio of 6.17%, which The subprime loan balance of 218.33 billion yuan, total loans ratio of 1.06%, the suspicious loan balance of 462.38 billion yuan, total loans ratio of 2.25%, loss loans of 587.71 billion yuan, total loans ratio of 2.86%. since the establishment of the China Banking Regulatory Commission, has been the banking industry a decline in non-performing loans as a top priority of the regulatory work, and actively promote the system and mechanism reform of the banking financial institutions, commercial banks continue to promote active Qing received loans and take advantage of the provision to write off loan losses, improve the quality of credit assets, commercial banks The decline in the proportion of non-performing loans, reached its lowest level in history. The end of 2007, commercial banks' bad loan ratio was 6.17%, on the basis of the ratio of 7.09% at the end of last year showed a continued downward trend throughout the year. The end of 2007, Chinese commercial banks' bad loans amounted to 1 trillion 2,684.2 billion yuan, the data of the data compared to the previous year $ 1 trillion 2,549.2 billion yuan slightly rising. Sub-agencies of foreign banks non-performing loan ratio of the lowest, 0.46%; followed by joint-stock commercial banks, non-performing loans of state-owned commercial banks was 2.15%; rate is still the highest 8.05%.
Second, the causes of non-performing loans analysis
The non-performing loans of the formation of a variety of reasons, no more than from endogenous factors in the the primary bank external factors and the bank's internal management.
1 From the primary factors due to the bank's external
(1) The Borrower factors. Borrower internal poor management, shrinking product market is also possible that the borrower by the restructuring of the machine deliberate evasion of bank debt, the lack of repayment awareness. (2) policy factors. Economic fluctuations in the high-frequency, large amplitude, the expansion and contraction of credit under considerable pressure due to the lack of continuity of macroeconomic policies, macro-tightening period of economic adjustment, the formation of a large number of loans precipitation often. (3) administrative intervention factors. Pressure, mainly for the local government and local fiscal squeeze, forcing banks to issue a large number of instigation loan relief loans, lending practices administrative, credit funds The Fiscal directly weaken the loan the basis of cost-effectiveness.
Bank's internal management endogenous factors
(1) The decision-making errors. The bank's senior management to determine deviations or mistakes caused the failure of the major credit decisions on the borrower's status and market situation led to the formation of non-performing loans. (2) the credit quality of personnel. Part of the quality of personnel is not high, it is difficult to carry out scientific decision-making and effective management of the loans, illegal lending have occurred; loan officers in the implementation of the credit policy, arbitrariness is large, there is the phenomenon of "human instead of system". (3) The loan structure is irrational. Loan portfolio structural imbalances, such as loans to invest in loans and excessive concentration unreasonable cause resulting in the formation of non-performing loans. (4) moral factors. Credit must have certain financial theory, corporate financial management, legal system, business knowledge, but also must have the honesty and strong sense of responsibility. Part of the loan officer "in its place without their jobs" initiative, lack of pioneering and innovative spirit, not to do my own work. Even deliberately graft and embezzlement, violation of discipline, criminal, causing the formation of non-performing loans.
Third, the collection of non-performing loans way
The banks' bad loans, is the biggest risk lies in China's financial industry. Internationally accepted standards that 10% of non-performing assets of financial institutions rate cordon. In recent years, China's non-performing loan ratio declining trend, but the non-performing loans remains a threat to the financial security and stability. . Collection and how to take reasonable way to resolve the non-performing assets has been the banking sector is an urgent need to solve the main problem.
1 have a sound organizational management system
The head offices of banks should have to manage the loan approval decision-making body of the bank-wide risk, specialized departments, such as Asset Preservation management and handling; various branches and sub-branches have risk loans to to resolve group, step by step to manage risk loans.
To strengthen the management of non-performing enterprises
Companies generally bad faith is not normal debt service enterprise, subjective and objective reasons can not be normal debt service, therefore, should be classified management, the implementation of the policy of the distinction of different reasons, objective reasons in business on cash-flow problems or poor management, not in line with national industrial policies and environmental requirements, the business unsustainable, unable to repay; subjective mainly due to the use of non-normal operation, deliberately reducing assets or increase in liabilities to its also not less loan purpose, such intentional debt evasion behavior must be strictly executed by the relevant provisions of the People's Bank of China.
3 using legal means to preserve assets
More litigation to force the use of the state machinery to safeguard the legitimate rights of financial institutions, to resolve through litigation risk loans critical to the success mainly depends on the effectiveness of the property preservation work, once the preservation success, lawsuits can be ended prematurely through reconciliation fully recover loans financial institutions to resolve through litigation risk loans, focusing on fact, the maintenance of the body's rights is not to ignore the provisions of the judicial process, leading to loss of substantive rights and procedural delay, that the limitation of actions to The people's court for the protection of civil rights litigation limitation period of two years, some special cases for one year.
Subject to open bidding auction
Use the auction method is the most notarized fair value of the assets has been the greatest manifestation of a way. Auction shoot, make an inventory of non-performing assets, the recovery of funds, funds greatly reduce the risk.
Government's commitment to non-performing financial assets
Look at the causes of the bad assets from the financial intervention in local government, bank loans used to support enterprises and local economic development. Therefore, both from the principle of benefit, or to investigate the cause of the loss, the debtor and local governments should bear the reasonable cost of the corresponding share in this dislocation resources reconfigure process. In essence, the disposal of non-performing assets to reconfigure it as much as possible to maximize the social utility of the history of the formation of dislocation of social resources. But the loss of such a reallocation of resources, if all borne by the banks is clearly unreasonable.
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