How are bad debts incurred by banks dealt with? How are banks' non-performing assets handled? Do you know how bad debts incurred by banks are dealt with? The so-called bad debts are the situation when the loans issued by Jinniu Bank cannot be recovered in time after maturity, and the latter cannot be recovered at all. In fact, bad debts are just what ordinary people call them. In banks, they are really called non-performing loans or non-performing assets. , some people are worried that if the loans given out by banks cannot be recovered, will it affect their deposits in the bank? There is no need to worry about this at all, because the regulatory authorities have strict accounting systems for bank deposits and loans. How much of the loans issued may become bad debts and non-performing loans, and how much reserves need to be set aside to cover these non-performing loans? All have clear requirements. How do banks deal with non-performing loans? There are several common ways. First, negotiate repayment. After a bad debt occurs, the bank will first negotiate with the borrower and try to get the borrower to repay. This can save a lot of unnecessary trouble. If it doesn't work, the bank will take action. , seize the borrower's property and deduct it. Second, deal with the collateral or find a guarantor to repay. If the borrower has relevant assets as collateral when borrowing, even if there is no mortgage, the borrower has assets that can be sold after the court sues and decides. The bank will sell the borrower's assets for repayment. loan. Third, the method of borrowing new and repaying old is mainly for corporate loans. When banks extend loans, they hope to get them back on time. The reality is often not satisfactory. When a company encounters difficulties in operation, but the company still has a market and room for development, banks Another loan will be provided to help it tide over the difficulties. Or convert bonds into equity, converting non-performing loans into bank investment shares in the enterprise.