1, transferred to asset management company

2. Judicial execution

3, mat endowment across the bridge

4. Five-color soil loan

Non-performing loans refer to overdue loans, sluggish loans and non-performing loans. Overdue loans refer to loans that cannot be repaid when the loan contract expires (including after the extension). Sluggish loans refer to loans that are overdue (including after extension) and have not been repaid, or loans that are not overdue or overdue but have terminated production and operation and stopped project construction; Non-performing loans are loans classified as non-performing loans according to relevant regulations. Non-performing loans indicate that banks will suffer risk losses. Minimizing non-performing loans is the primary goal of risk management of commercial banks.

Non-performing loans refer to loans that borrowers and guarantors fail to pay off after being declared bankrupt according to law. Loans that cannot be paid off after the borrower dies or is declared missing or dead and is paid off with his property or inheritance; Due to major natural disasters or accidents, the borrower is really unable to repay part or all of the loans with huge losses, or the loans that cannot be repaid after insurance settlement; The lender's proceeds from disposing the loan collateral and pledge according to law are not enough to offset the mortgaged or pledged loan; Loan projects approved for write-off by the State Council.

How do banks handle non-performing loans?

1, loan extension

When the borrower is in good business condition, but only because the funds are temporarily unable to turn around, banks often apply for loan extension for the borrower. Sometimes, the borrower will be helped to tide over the difficulties by borrowing the new and returning the old without paying back the principal.

2. Exhibits borrowed from the exhibition

If the borrower's problem cannot be solved through loan extension or debt restructuring, the bank will sue the court, seal up, freeze and deduct the assets under the borrower's name, and pay off the debt by auction. If the assets are insolvent, the guarantor of the loan will be found back.

3. Transfer of assets

For long-term and repeated collection of irrecoverable loans, banks generally choose to sell their creditor's rights to asset management companies at a discount to realize the divestiture of non-performing assets.

4. Write-off of bad assets

After non-performing loans are recognized as losses, banks will write off non-performing loans in order to control the rate of non-performing loans, provided that the conditions for write-off are met. It should be noted that write-off is only a financial treatment, which does not mean that the debt relationship between the bank and the borrower has been dissolved, and the bank still reserves the right to recover the loan.

legal ground

General principles of loans

Article 37 The credit department shall be responsible for the collection and write-off of non-performing loans, and the audit department shall be responsible for checking the collection. The lender shall withdraw the bad debt reserve in accordance with the relevant provisions of the state, and write off bad loans in accordance with the conditions and procedures for writing off bad debts. Without the approval of the State Council, the lender may not waive the loan. Except with the approval of the State Council, no unit or individual may force the lender to waive the loan.