Accelerated disposal of bad bank assets policy recommendations

Document Sample
Accelerated disposal of bad bank assets policy recommendations Powered By Docstoc
					Accelerated disposal of bad bank assets policy recommendations
  Both developed and developing countries, how to effectively guard against and
defuse the bad assets have been encountered in the international banking community
can not avoid global problem. Right is in transition to a market economy for
China's banking industry to accelerate the disposal of bad assets only from
the government, banks, enterprises, especially state-owned enterprise reform to
proceed, can be effective and integrate the results.

  First, give full play to the Government in the bank non-performing assets disposal
process and the basic role

1. Deepen structural reforms, strengthen macroeconomic control to prevent
macro-economic fluctuations. China's non-performing assets of the
institutional features that deepen the structural reform, to ensure the economic
development of effective prevention and disposal of quality is a prerequisite for
non-performing assets. In fact, the banks most worried about is macroeconomic
volatility. This point, we can before and after the Asian financial crisis, Thailand,
Korea, Singapore changes in non-performing loans to get a clear observation.
Therefore, we process of deepening reform, we should learn from developed western
capitalist countries absorb the market's successful experience in economic
construction, continuously strengthen macro-control ability, 提 高               macro
decision-making accuracy and predictability.

2. To create a non-performing assets of a good external environment. First of all, we
must regulate the relationship between the government and banks. The present
circumstances, 要 efforts to change the major issues of state-owned commercial
banks by the government officials and banking party committee decided the status of
the Board Zai truly play its due role in Corporate Governance. Secondly, banks
dispose of bad assets this particular behavior, we must establish a special
"non-performing assets of financial law" to regulate the disposal
of bad assets, as non-performing assets to provide specialized services. At the same
time, to lay down the "Loan Act", sure to manage the loans,
lending behavior to achieve the legal system. Finally, we should vigorously improve
the social credit environment, to avoid the corporate Tao Feizhai behavior.

3. Cultivate non-performing assets market, promote the circulation of non-performing
assets. While relaxing the private capital market access, to allow private capital to join
in the disposal of bad assets to the business; the other hand, international markets, the
introduction of foreign strategic investors. Meanwhile, property rights transactions in
the enterprise based on the gradual establishment of non-performing loans, including
banks, including forms of debt market and enhance the liquidity of debt. Which is the
key to solve the pricing of non-performing assets. Therefore, assessment of
non-performing assets to strengthen the system construction, improve the assessment
of accuracy and impartiality.
   Second, focus on improving the main commercial bank's ability to
dispose of bad assets

1. Revitalize the stock, make great efforts to compress the existing non-performing
loans. Solve the bad loan problem, you must first activate the bad assets from the start,
the use of economic, legal, administrative and other measures, multi-pronged
approach to the formation of non-performing assets have been gradually compressed
to a manageable limit. To this end, we must actively seize the good opportunity to the
local economy, accelerate the disposal of repossessed assets to property repossessed
assets through the development, transfer, leasing and sale of assets realized in the
form of preservation; to support key projects, key projects building the same time, the
opportunity to seek the support of local governments, commercial banks and the
debtor's bilateral negotiations 变 成 government Bumen, Hang Shi
functions of government departments involved in multi-Touzigongsi
Deng's negotiations to resolve the Bad Assets Lishi left; make full use of
Bank's own advantages and various service functions, in the careful market
research, based on the actual risk control first, active cooperation with the debtor, to
have Zhang relaxation, rovide water for fish in the clear revenue Strategies.
Meanwhile, efforts to help enterprises to strengthen management, to support
enterprise reform and property rights system for domestic and foreign enterprises with
joint, co-operation through mergers, debt restructuring, to increase their investment
and other new ways to revitalize the corporate restructuring; to focus on the potential
of mining within the bank, through the development of non-performing assets
received clear incentives to focus all resources, to mobilize all efforts on clearing

2. Against the incremental, effective control of credit risk assets. Various non-market
factors and the bank itself are all factors in the formation of non-performing assets
have a major impact. Therefore, we explore the banking reform, should also
strengthen financial innovation, based on the commercial bank's credit risk
management capabilities, development, use modern credit risk management tools.
Among them, the management of credit derivatives, credit risk spread and
re-configure a powerful tool, its presence can change their traditional lending
relationship between banks and enterprises, increase the flexibility of bank loan
management. If the borrowers credit crisis emerged, commercial banks can start the
delivery of credit derivatives, credit derivatives market through risk transfer will not
want to go out and achieve re-configuration, which also can inhibit the
borrower's moral hazard.

3. Innovative means of non-performing assets.

(1) to innovative mechanisms for non-performing assets. At present, China
commercial banks dispose of bad loans to asset management commonly used risk
models. In this regard, we can view from the financial mixed operation,
transformation of state-owned commercial bank financial holding group, consists of a
holding of the joint-stock banks and a wholly owned asset management companies,
non-performing assets of banks separated from the inside out by a wholly-owned asset
management company specialized operation, while investment banking given the
corresponding functions, and full use of the state's preferential policies for
asset management companies, and gradually realize cooperation and foreign
investment banks, commercial banks dispose of bad assets.

(2) increase the market's efforts to dispose of bad assets. One is to
strengthen non-performing assets management theory, change the bad assets will
practice only as a burden and discover the true value of bad assets and operations
through various means to increase their real market value, so that hardening re-flow
and activation of non-performing assets to generate new cash flow. Meanwhile, the
realization        of        the        "asset-centric"          to
"customer-centric" transformation, will be the disposal of bad
assets and bad customer assistance combine to achieve the common development of
banks and their customers. Second, strengthen the packaging, bidding, commissioned
operation, auction, promotion and other market-oriented asset disposal and promote
the use of a summary, rich in content and form and innovation continue to expand and
enhance the effect of disposal of the market. Third, strengthen cooperation and asset
management companies, full use of the national asset management company to give
special incentives to explore the physical investment, debt-equity swap of assets
disposed of new methods, new ways to make the whole package transfers disposal.

(3) active pilot securitization of non-performing assets. Securitization of
non-performing assets of financial institutions dealing with Western developed
countries, non-performing assets is an important experience. Its essence is a series of
bad bank portfolio, packaging, measured by an intermediary body Pinggu after, as its
underlying asset She Ji Yi Ding of securities of 产品, through the capital market for
sale to investors, Yi Dadaochuzhi bad assets Huishouzijin the Mudi . Non-performing
assets securitization of bad loans the banks can book from the bank on a massive scale
to eliminate, to increase bank liquidity, to reduce bank risk, improve the
bank's capital adequacy ratio. Although its implementation requires a
certain condition, but as a financial derivatives innovation, we should actively

4. Improve the commercial bank loan risk management systems and enhance capacity
of self-restraint. First of all, to establish and improve credit management,
organizational structure, processes and analytical tools, such as the implementation of
flat management, credit risk management continue to be a new concept, principles,
tools, etc. through the institutionalized framework, passed to the line of credit
business, credit approval and control and other related personnel, to credit and risk
management related to the customer on the credit situation of serious and responsible
investigation. Second, the risk of credit assets should be classified as the core of risk
control, establish a risk classification model, improved loan risk early warning
mechanism. Vertical leadership to implement the credit again to establish systems of
strict bank's audit system, and actively promote a relatively independent
internal audit system and improve auditing and audit independence, the frequency and
quality, and strict accountability and executives directly responsible for liability.
Finally we need to nurture and establish a good credit culture. The final analysis,
credit decisions were made on the people to judge, only a healthy credit culture, credit
officers to make due diligence in order to implement the rules and regulations in order
to form a common risk management values and behaviors.

   Third, deepen the reform of enterprises, especially state-owned enterprises reshape
relations between banks and enterprises

1. Accelerate the pace of enterprise reform, improve the enterprise's capital
strength. In recent years, 我国 enterprise capital strength, although much of the
reform improved Dan in terms of market economy rules, Zong Ti Yi Ran a lower
proportion. Indirect financing in the corporate dominated case, the business capital of
the lower proportion of potential first problem is to leverage bank lending rate was
higher leverage means higher risk enterprise itself is relatively small, but Bank risk is
relatively greater. Therefore, only accelerate enterprise reform and growth, guide
enterprises to firmly take a standardized bankruptcy, encouraging mergers, reducing
the road to increase efficiency, and actively promote the company's capital
restructuring to address the inefficient small-scale problems, and constantly enhance
their capital Golden ratio of capital to supplement and perfect the mechanism of
self-accumulation, bank loans, it may reduce the risk.

2. To cut off state-owned commercial banks and the necessary connection between
state-owned enterprises, so that the two were a real market competitors, and the
establishment of commercial debt payment. In China, the state-owned commercial
banks and state-owned enterprises is not between the debts and liabilities of the
Western market economy, meaning that credit and debt, at best a
"subsequent" (ex post) debt payment. Therefore, while we only
deepen the reform of property rights of state-owned enterprises, to really establish a
"clear property rights, power and responsibility, separation of enterprise
and scientific management" of the modern enterprise system and the
shareholders, board of directors, managers, board of supervisors to discharge their
responsibilities standardized corporate governance structure, in the past distorted
relationship between the bank and will return to normal, banks have served as a
constraint to strengthen creditor banks of bad assets is possible to eradicate.

Shared By: