Bank non-performing loan disposal methods

Bank non-performing loan disposal methods: 1. Transfer the non-performing loans to the asset management company. The bank transfers the non-performing loans to the asset management company and transfers the non-performing loans to the bank. Strip. 2. Judicial execution, the bank files a lawsuit to apply for the enforcement of the assets in the name of the debtor. 3. Advance funds to cross the bridge, and a third party contributes funds to help advance the loan. 4. Wusetu loans, Wusetu investors grant loans to debtors and supervise the debtors to repay the bank loans.

1. Non-performing loans are the general term for overdue loans, sluggish loans and bad debt loans. Overdue loans refer to loans that have not been repaid when due (including due after extension) as stipulated in the loan contract. Sluggish loans are loans that are overdue (including due after extension) for more than the specified number of years and have not been repaid, or are not overdue or are overdue and do not meet the regulations. Loans that have expired but production and operations have been terminated and projects have been suspended; bad debt loans are loans that are classified as bad debts according to relevant regulations. Non-performing loans indicate that banks will incur risk losses. Reducing non-performing loans to a minimum is the primary goal of risk management for commercial banks. According to the "General Rules for Loans" (Trial) issued by the People's Bank of China on July 27, 1995, non-performing loans are divided into overdue loans, sluggish loans and bad debt loans. China has fully implemented a five-level loan classification system since 2002. For a long time, the credit funds of China's specialized banks have been basically operated in an extensive manner, and non-performing loans have accounted for a considerable proportion of the loans of specialized banks. The problem of non-performing loans has not only seriously restricted the transformation of specialized banks into state-owned commercial banks, but has also become a factor in China's economic development. A major hidden danger in China has reached a point where it is necessary but difficult to solve. Analyzing the causes of non-performing loans is of great significance in promoting the transformation of China's banking business operations from extensive to intensive.

2. Refers to the loan in which the borrower and the guarantor declare bankruptcy in accordance with the law and fail to repay the loan after repayment; the borrower dies or in accordance with the provisions of the "General Principles of the People's Republic of China and Civil Law", A loan that has been declared missing or dead and failed to be repaid after using its property or inheritance; the borrower has suffered a major natural disaster or accident, suffered huge losses and cannot obtain insurance compensation, and is indeed unable to repay part or all of the loan, or Loans that cannot be repaid after being repaid with insurance; loans obtained by disposing of loan collateral and pledged properties in accordance with the law are insufficient to compensate for the mortgage; loans that have been written off with special project approval of the State Council.

3. In China’s economic life, many people believe that bank money belongs to the state. Not only many people in enterprises, business administration departments, and local party and government departments believe so, but also some cadres of the Bank of China. Employees think so too. When asked where corporate loans come from, many business leaders will not hesitate to say that they are provided by the state. Some leaders of state-owned enterprises even believe that state-owned enterprises borrowing money from state-owned banks is like borrowing money from state-owned banks. A man moves his money from one pocket to another, whether he pays it back or not. The assets of state-owned banks are all regarded as state-owned assets, and the money in state-owned banks is considered to be "public". This is the ideological root of the non-performing loans of Chinese banks.

How are the non-performing loans that the bank cannot recover finally disposed of? What are the rules?

Hello, I am happy to answer your question. How are the non-performing loans that the bank cannot recover finally disposed of? What are the rules? There are many ways for banks to dispose of non-performing assets. The most common methods are as follows:

1. Legal disposal

Bank loans cannot be recovered on time. The bank initially resorted to collection methods, but the collection failed. The bank will take legal measures, including litigation, preservation, freezing and disposal of non-performing assets, and recover all or part of the non-performing loans.

2. Package transfer

The method for banks to deal with non-performing loans: package transfer. Before the listing of the four major state-owned commercial banks (ICBC, Agricultural Bank of China, China Construction Bank), they all established corresponding Asset management companies accept the non-performing assets of the four major state-owned commercial banks, making it easier for the four major state-owned banks to carry out operations. Asset management companies are responsible for revitalizing and disposing of non-performing assets. During the operation of banks, non-performing assets are generated and will be packaged and sold to asset management companies. The two parties reached an agreement that the bank would sell and transfer the non-performing assets and the asset management company would take over the non-performing assets.

3. Bad debt write-off

For non-performing loans that cannot be recovered, banks will transfer them to bad debts in accordance with regulations, and apply for bad debt write-off according to different types of bad debts.

For example: legal litigation, the bank's non-performing assets are subject to litigation, the non-performing assets are disposed of, part of the loan cannot be recovered, and bad debts are written off. In the package sale category, banks package and dispose of non-performing assets at a price lower than the original non-performing loans. The difference forms a loss and is transferred to bad debts for write-off of bad debts.

In the process of writing off bad debts, the bank determines the responsibilities, and handles the responsible managers, reviewers, and managers accordingly. Administrative sanctions and fines will be dealt with. Different responsibilities will be dealt with differently. In serious cases, Removed.

In short, there are reasons for bank loans to become non-performing, mainly due to debtor reasons, market reasons, operating reasons, capital withdrawal reasons, etc., which cause bank loans to become non-performing and cause losses. Bank loans are allowed to have bad debts, and bad debt reserves are also provided in advance. The bad debt reserves are used to write off bad debt loans. However, the write-off of bad debt loans is only for internal accounting processing of the bank and does not mean that the debtor does not have to repay it. The bank's claims are still there, and as long as the debtor has the ability to repay, he still has to pay them back. The bank will track the collection and try its best to collect it and reduce losses.

The above is my answer, I hope it can help you.

Non-performing loans are basically a headache that every bank encounters in reality, but the occurrence of non-performing loans does not mean losses. For example: the previously reported non-performing loan balance of Guiyang Rural Commercial Bank is about 10 billion yuan, with a non-performing rate of nearly 20%. Based on Guiyang Rural Commerce’s annual profits alone, it would take 20 years to cover the non-performing balance. However, China Chengxin International still gives Guiyang Rural Commerce an A-level rating. This is because non-performing loans do not represent It must be a loss, so how do banks deal with overdue non-performing loans? (The disposal methods of individuals and enterprises are similar, so the corporate ones are introduced uniformly).

Borrowing new and repaying old ones, extending and restructuring

For overdue loans, it is confirmed through investigation that the company only has staged or temporary operating difficulties and is still able to repay the interest. If the principal is temporarily unable to be repaid, banks will generally resort to borrowing new money to repay the old loan (issuing a new loan to repay the old loan) or extending it (extending the loan repayment period) to reduce the pressure on the company.

For enterprises with major problems, they will be solved through restructuring, such as having another entity with normal operations (such as the original guarantor) take over the loan. Loan restructuring requires that the borrower and the security method must not be weaker than the original borrower and the security method.

Loan collection

If none of the above methods can solve the problem, banks will generally seize, freeze, or seize the assets in the company’s name and transfer them to the company’s bank account. funds in the company or auction the company's assets (of course, in reality, the assets of many companies are mortgaged to different banks, so banks can often only auction the assets mortgaged by the bank) to repay the bank's loan. If the company's account If the balance or the auctioned assets are not enough to cover the entire loan amount, and there is a guarantor for this business, the bank will recover from the guarantor and the guarantor will compensate.

At this stage, if there is collateral, the loan principal that can be recovered is generally more than 90% (because the collateral is mortgaged at a discount of 0.7% or less); if it is guaranteed Yes, more than 70% of the loan principal can be recovered.

Loan transfer

Some are more difficult to handle, such as the location of the collateral being remote and difficult to dispose of, or the guarantor being uncooperative, returning a little bit each time, etc. The bank does not want to spend too much Those that take time and energy to deal with will be packaged and sold to the non-performing asset collection company. Afterwards, the non-performing asset collection company has no relationship with the bank regardless of whether the funds recovered are higher or lower than the amount sold by the bank.

Loan write-off

After processing through the second and third methods, there is still a gap, for example, a loan of 10 million yuan, only 9 million yuan will be recovered through the above method. Then the remaining 1 million yuan is a real non-performing loan, and it is confirmed by the bank that it cannot be recovered. Then the bank will write off the difference. However, it should be noted that writing off is just the bank's accounting method. , indicating that there is no such bad amount in the account, but the debt relationship between you and the bank has not been terminated. If you have the ability to repay in the future, the bank may still ask you to repay.

Summary

Personal non-performing loans are solved in the same way as corporate loans. However, because the amount of personal loans is relatively small, banks generally skip the first step and collect directly from the non-performing loans. Phase begins.

Banks are not charitable institutions. They will not accept losses easily for non-performing loans and will take all measures to reduce the amount of losses as much as possible.

Non-performing loans that banks cannot recover will go through several links such as collection, asset disposal, debt transfer, and write-off. The process and method of processing are also different according to the nature and amount of each loan. .

For example, student loans, there is an example around me, a woman, after graduation, the student loan has not been repaid. Later, the printed credit report showed bad debts. During this period, the dishonest person entered the society and replaced She lost her contact information, but the bank has been unable to contact her, so she has not gone through any decent collection. Now her life is as usual and she is in a daze. In her own words, she doesn't know how to pay it back.

Let’s talk about the most common housing mortgage loan. This loan business is quite extensive. For now, housing mortgage loans are quite high-quality loans. Once the borrower starts to be overdue, the bank will call to remind you in time and ask about the relevant reasons. After three months of overdue payment, the bank will negotiate with the mortgagor to sell the house in order to repay the debt.

At this time, some mortgagors will agree. At this time, the mortgagor still has a great say in handling the price of the house. If this stage is missed, the bank will kill the mortgagor and the bank will have nothing to do with it. After winning the case uncontested, the house enters the auction system. As for the selling price, the price provided by the company is evaluated, and then a discount is applied.

Some banks will package a group of overdue customers and sell them to asset management companies, and then the asset management companies will negotiate with the debtors. Whether to negotiate disposal or go through legal procedures depends on the outcome of the negotiation.

Loans with collateral on the market, such as private loans and mortgage business loans where the company is the borrower, generally follow this process. This is the root of Jack Ma’s criticism of the pawnshop mentality in the domestic banking industry.

Let’s talk about unsecured credit loans, such as credit cards, credit loans, tax loans, etc., which all fall into this category. The most prominent ones at present are credit cards and credit loans, with many defaults and overdue loans.

Once the payment is overdue, the bank or consumer finance institution will first collect the debt on its own. If the debt collection fails, it will be outsourced to a professional debt collection company. In fact, the tactics are the same, including threats and intimidation, psychological warfare, exposure to address books, etc. You lose face. If you are mentally strong and survive this stage, the three-party debt collectors will withdraw, and banks and consumer finance companies will use their own legal affairs to batch out debtors. As for the judgment, it all depends on the evidence.

Once these debts enter the judicial process, after the judgment is made, the creditor will apply for compulsory execution if he wins the case. There is an enforcement bureau that does this, originally called the enforcement tribunal. Enforcement is to search for clues about the property in the debtor's name. Once it is found, the property that should be removed will be removed, and the property that should be sealed will be sealed. After the seizure, it will wait for auction.

In short, banks have various means to collect non-performing assets, and debtors are basically passive. In fact, the ratio of personal non-performing loans to all non-performing loans is basically a drop in the bucket. The real non-performing loans are all listed under certain names in various places. New loans are used to repay old ones, and revolving credit is covered up. This is the biggest Bad loans.

How do banks deal with non-performing loans_How do banks deal with non-performing loans?

How do banks deal with non-performing loans? Nonperforming loans are loans that are in default. Generally speaking, a loan is considered a non-performing loan if the borrower delays in repaying the principal and interest for three months. When banks determine that non-performing loans are no longer recoverable, they should write them off from profits. When overdue loans cannot be recovered but have not yet been determined, a provision for bad debt losses should be made on the books.

Methods for handling bank non-performing loans

1. Banks should set up special agencies or designate dedicated people for collection, and increase the intensity of writing off non-performing assets;

2. Through assets Resolve non-performing assets of commercial banks through securitization;

3. Vigorously promote the reform of state-owned enterprises, rectify social credit, and improve financial regulations;

4. Transform the operating mechanism of commercial banks.

Methods for handling non-performing loans of commercial banks

1. Transfer them to asset management companies. Banks transfer bad loans to four major asset management companies. Debts generally need to be sold at a discount.

2. Judicial execution. The bank can enforce the assets in the name of the debtor by applying to the bank. For non-performing loans, the real estate auction price may be only 50% to 10% off the market price. The total principal and interest is subject to some price risk.

3. Advance funds to cross the bridge. The third party contributes capital to advance the bank loan, the original loan is settled, and the bank re-issues a new loan. The total monthly interest fee for advance payment is about 5%-6%. Because the investor's risk is relatively high, the investor may change his mind at the last minute.

4. Other disposal methods. Dispose of non-performing loans through asset restructuring, bankruptcy liquidation, asset replacement, debt-to-equity swap and other methods.

Measures for the collection of non-performing loans

1. Implement responsibility collection

Strictly implement the loan liability accountability system, and implement responsibilities in accordance with the "New Chen Division". Active measures must be taken to collect and deal with the loans to ensure that the absolute amount is reduced; the responsible person must pay full compensation for the non-performing loans formed, otherwise they will be laid off, suspended, or recovered within a time limit to ensure that there are no non-performing loans caused by human factors. Punishment measures must be fulfilled for those who need to be withdrawn within a time limit, and we must not delay or tolerate them. We must suspend wages when they should be suspended, compensate when they should be compensated, be laid off when they should be laid off, and take legal action if they should be laid off.

Second, implement. Coordinate the collection

For non-performing loans that have been formed over many years such as government agency fiscal loans, government interference, village collective loans, enterprise loans, etc., each cooperative must promptly coordinate with the local party committee, government or competent department, and pass the financial Coordinate collection by allocating subsidies, paying off debts with government and village property, etc.

3. Implement collection according to law

For debt defaulters who have the ability to repay but refuse to repay. Accounts, non-trustworthy enterprises and individuals must use legal means to collect non-performing loans in accordance with the law.

4. Implement special collection groups

Strengthen leadership, be highly responsible, and set up special collection teams. Collection team.

5. Implement pressure collection

First internally and externally, both internally and externally, and do a good job in front-door clearance by flexibly exerting pressure on the guarantor. Pay off the debt or sell off the valid assets to repay the loan.

6. Implement disposal and recovery

The procuratorate and other authorities will take measures such as deducting and sealing up the bad loans according to the law.

1. Definition of non-performing loan recovery

Non-performing loan recovery refers to the net recovery of the principal and interest of non-performing loans with monetary funds. The management of non-performing loan recovery includes the collection, revitalization, preservation and other aspects of non-performing loans. The objects of non-performing loan recovery and management are all-performing non-performing loans, focusing on sluggish loans and bad debt loans classified at four levels, doubtful and loss loans after the implementation of five-level classification, and uncollected interest receivable on and off the balance sheet.

2. How to prevent the increase of non-performing loans after being cleared

1. Strengthen the collection of non-performing loans and try to collect non-performing loans to the maximum extent.

2. Increase the accountability of non-performing loans so that each bad loan can be assigned to the individual and collected within a time limit.

3. Strengthen the management of the internal control system to prevent new non-performing loans.

p>

4. Increase efforts to collect loans in the special category in the five-level classification, and at the same time monitor normal loans that may become non-performing among normal loans to prevent new non-performing loans.

5. Management of newly issued loans should be strengthened and legal and compliant, and resolutely put an end to the use of loans to collect loans and the use of loans to collect interest to prevent the increase of non-performing loans.

That’s it for the introduction of loan disposal measures.