In 1999, my country established four financial asset management companies: Huarong, Great Wall, Cinda, and Dongfang, respectively to acquire, manage and dispose of some non-performing assets of the four state-owned commercial banks and the China Development Bank. ***Received 1.4 trillion yuan of non-performing assets from the four major state-owned commercial banks. In the past 10 years, four asset management companies have completed the acquisition of policy-related non-performing assets and made significant contributions to the successful transformation and listing of state-owned commercial banks, effectively resolving financial risks. This article mainly analyzes the important role of asset management companies in the restructuring of my country's state-owned banks by elaborating on the status of non-performing assets of state-owned banks and the operations of asset management companies. 2010 is a critical year for the development of financial asset management companies. The operating life of the four financial asset management companies is 10 years and expires in 2010. The reform plan has been reported to the State Council and is waiting for approval. The establishment of Guoxin Asset Management Company will undoubtedly have a huge impact on the market. Guoxin Asset Management Company will focus more on the disposal of policy-related state-owned assets, while the original four asset management companies will tend to operate more commercially.

Keywords asset management non-performing loans

In the 21st century, the trend of financial globalization has become more and more obvious. On the one hand, the efficiency of the global financial market has generally improved, and on the other hand, risks have also increased. Increase. In the late 1990s, financial crises broke out in some countries and regions one after another. Especially after the outbreak of the Southeast Asian financial crisis in 1997, it gave a great warning to the Chinese government and the financial community. The Chinese government assessed the situation and established four asset management companies: Cinda, Huarong, Dongfang and Great Wall in 1999. Their responsibilities are to accept, manage and dispose of non-performing financial assets divested from state-owned commercial banks. Their mission is to "resolve financial risks, Support the reform of state-owned enterprises."

1. The impact of non-performing assets of my country’s banks on the economy and finance

my country is building a socialist market economy. Stabilizing finance and stabilizing currency values ??are very important monetary policy goals, and preventing and Resolving financial risks is the key to financial reform. Before my country joined the WTO, the high liabilities of state-owned enterprises and non-performing assets of banks made banks face the biggest obstacles to marketization, commercialization and internationalization. They were important hidden dangers that threatened the country's financial security. They also affected the country's economic security and endangered the normal progress of the national economy. an outstanding issue. Mainly manifested in:

1. The disgusting cycle of high debt levels of state-owned enterprises and difficulties in recovering bank loans makes it difficult to achieve the goals of allocating resources according to market mechanisms and improving efficiency. It also restricts the adjustment of the national economic structure and the establishment of a standardized hard credit and debt constraint mechanism. The reasons for the formation of non-performing assets in Chinese banks are relatively complex, and the macroeconomic environment is one of the important reasons for the formation of non-performing assets. Due to historical reasons, some state-owned enterprises have unreasonable asset and liability structures and excessive debt burdens. This not only exposes banks to potential risks, but also becomes a serious obstacle to the development of state-owned enterprises. Because enterprises are heavily in debt and highly dependent on bank loans, they even live in banks. Corporate debts are increasing, and quite a few companies have no incentive to repay their debts. Some companies have taken advantage of the restructuring to form new companies through splits, joint ventures, and reorganizations, and have suspended banks in the name of contract leasing.< /p>

Debt, in the form of bankruptcy, "heavy debts, sampans running for their lives"; some companies first split up and then went bankrupt, did not notify the bank when they went bankrupt, and transferred assets before bankruptcy, leaving the bank's debts hanging.

2. Banks are special enterprises that operate money. Asset business, debt business, and intermediary business are the main businesses of commercial banks. The quality of assets plays a decisive role. A large number of non-performing assets worsen the operating conditions of banks; capital decreases year by year, bank strength is weakened, and commercial Cultural reform has been greatly affected, and survival and development have been greatly restricted. The problem of non-performing assets has overwhelmed banks. In order to complete the tasks assigned by superiors, some banks use loans to repay interest. Although it can temporarily cover up the contradiction, it also increases the number of non-performing assets. Over time, it becomes a disgusting cycle. .

3． The bank's creditworthiness has been reduced, its image has become worse, and its credit standing has been increasingly severely impacted.

Due to the poor quality of banks' non-performing assets and low degree of internationalization, their international credibility has also been affected. The capital adequacy ratio and non-performing assets have greatly affected the international credibility of my country's major commercial banks, and the banks' strength and image have deteriorated. , coupled with the fact that some international bank rating agencies with ulterior motives are making a fuss about these two problems in our country, causing our credit rating to be low. Especially on the eve of joining the WTO, state-owned commercial banks must have strong competitiveness, otherwise they will There is a risk of being eliminated, and the generation of non-performing assets hides the asset flow and support problems of the banking system. This problem, which is covered up by the support of national credit, will only bring about a potential bank credibility crisis and force banks to increase their invoices. If they do not Taking measures will only stagnate the bank's capital circulation, weaken the ability to adapt, increase corporate debt burdens faster, and deepen the contradiction between total social demand and total supply.

2. Disposal of non-performing loans of state-owned commercial banks

Non-performing loans are the enemy that affects the safe operation of China’s financial system and have always been a concern for the financial industry. The problem of non-performing loans directly affects the safety, liquidity and profitability of commercial banks, so the disposal of non-performing loans has become the primary issue faced by the banking industry. Regarding the disposal methods of non-performing loans of state-owned commercial banks, the following three methods are mainly used in China: First, banks Dispose of it yourself. Generally, the assets of borrowing companies are obtained through agreement collection, litigation collection, etc., and then the "debt-repaired assets" are disposed of; the second is asset securitization. Its essence is to sell accounts receivable generated from a series of future income cash flows to a special purpose vehicle (SPV) that implements securitization at a negotiated price. After being packaged in securities, the accounts receivable are sold by the SPV according to This is the process of issuing higher investment grade securities for financing; third, the government participates in the divestiture of non-performing loans. From 1999 to 2000, the four major state-owned commercial banks divested some of their non-performing assets to the four major asset management companies (AMCs) in accordance with the relevant regulations of the State Council and the Ministry of Finance. The principal portion of the loan is enough.