Non-performing assets actually refer to non-performing loans. According to Article 5 of the Guidelines for Loan Risk Classification, loans are generally divided into five categories: normal, concerned, secondary, doubtful and loss, and the latter three categories are collectively referred to as non-performing loans. Next, let's take a closer look:

Article 5 Commercial banks shall, in accordance with these Guidelines, at least classify loans into five categories: normal, concerned, secondary, doubtful and loss, and the latter three categories are collectively referred to as non-performing loans.

Normal: The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.

Note: Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment.

Secondary: The borrower has obvious problems in repayment ability, and cannot fully repay the loan principal and interest by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.

Suspicious: the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.

Loss: After taking all possible measures or all necessary legal procedures, the principal and interest are still unrecoverable, or only a small part can be recovered.

Article 21 A commercial bank shall, on the basis of loan classification, make full provision for loan losses in time and write off loan losses in accordance with relevant regulations.

Article 22 A commercial bank shall disclose the loan classification method, procedures, results, loan loss preparation, loan loss write-off and other information in accordance with relevant information disclosure regulations.

General principles of loans

Article 47 Lenders shall, according to the risk status of loans, classify loans into normal, concerned, secondary, doubtful and loss categories. Lenders should recover overdue loans in time. According to the days overdue, project loans and corporate loans are divided into five grades: 90 days overdue, 180 days overdue, 270 days overdue, 360 days overdue and more than 360 days overdue, which are important reference indicators for loan quality classification. For retail loans, the overdue days should be divided more carefully according to the above provisions.

Bad assets are the cause of loss and bankruptcy. Instead of buying, it is actually to save the bank's investment mistakes, so that it can lose less and earn a little earlier. Banks are important financial institutions in economic activities, which are related to people's livelihood. The government should do something to save them.

The disposal of non-performing assets refers to the activities of comprehensively using all means and methods to realize and enhance the value of assets within the scope permitted by laws and regulations. The treatment of bad debts generally goes through the following procedures:

1. Determine the object to be processed and publish the processing result.

2. Conduct due diligence.

3. negotiation.

4. Submit for approval.

5. auction

6. Registration fee.

7. Transfer of creditor's rights and announcement of creditor's rights transfer.

The rise of bad assets will inevitably lead to the disposal of bad assets. For small and medium-sized banks, there are many ways to dispose of non-performing assets, such as direct collection, agreement disposal, borrowing new and returning old, realization of security interest, court proceedings, transfer of non-performing assets, pre-tax deduction of loan losses, etc.

1. Direct collection This is a common practice for banks to collect overdue loans, and it should be collected within the limitation of action, which refers to the legal validity of the obligee requesting the people's court to protect its legitimate rights and interests by compulsory procedures. Therefore, the limitation of action is the legal effective period first, and the general limitation of action is two years, which can be interrupted (recalculated) or suspended (continued), but the parties may not agree to extend or shorten it; Secondly, the obligee did not claim his rights during the limitation of action, but lost the chance of litigation, that is, the right to request the people's court to protect his legitimate rights and interests by compulsory procedure, but did not lose his substantive rights, that is, if the debtor asked the bank to return the arrears paid on the grounds of exceeding the limitation of action, the court would generally not support it. Two. According to article 195 of the Property Law, it is stipulated that: "If the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the mortgagee may agree with the mortgagor to discount the collateral or give priority to compensation with the price of auction or sale of the collateral". Article 2 19 stipulates: "If the debtor fails to perform the due debts or realize the pledge right according to the agreement of the parties, the pledgee may agree with the pledger to discount or give priority to the payment with the price of auction or sale of the pledged property". Therefore, the bank can stipulate in the loan and guarantee contract that when the borrower fails to perform the debt as agreed in the contract, the bank has the right to discount the mortgaged (pledged) goods or give priority to the compensation from the auction or sale of the mortgaged (pledged) goods. The disposal by agreement has the following characteristics: first, the bank, the debtor and the mortgagor (pledger) reach an understanding through consultation; Second, it does not need to go through judicial procedures such as courts to achieve the effect of saving time and cost; Third, there are three ways to deal with collateral, namely, discount, auction and sale. Discounting is equivalent to paying debts in kind, that is, the debtor transfers the mortgaged (pledged) thing to the creditor at a fixed price. Article 42 of the Commercial Bank Law stipulates: "The real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge shall be disposed of within two years from the date of acquisition". Article 18 of the Measures of the Ministry of Finance for the Administration of Bank Debt-paid Assets stipulates: "The effective date of the debt-paid agreement or the effective date of the final ruling of the court or arbitration institution shall be the acquisition date of the debt-paid assets, and the real estate and equity shall be disposed of within 2 years from the acquisition date; Other rights except equity shall be disposed of as soon as possible within its validity period, and the longest period shall not exceed 2 years from the date of acquisition; Movable property shall be disposed of within 1 year from the date of acquisition. " 19 stipulates: "In principle, the debt-paying assets shall be disposed of by public auction". Therefore, the debt-paying assets should be disposed of within the specified time and should be disposed of by public auction.

Auction is the sale of mortgaged (pledged) things by public auction, and the sale price is used to pay off debts.

Sale refers to the transfer of mortgaged (pledged) property to a third party at the market price, and the transfer price is used to pay off debts. In order to avoid moral hazard, it is suggested that the collateral (pledge) be evaluated by a third-party evaluation company. In practice, there are two problems in sales methods. First, the collateral cannot be transferred before it is lifted. Second, after the mortgage is released and transferred to a third person's name, the mortgage is in a "vacuum" state, the mortgage (pledge) right has not been set, and the nominal ownership is still in the name of the original mortgagor (pledger), so there are cases where other creditors "rob" it to seal it up or register the mortgage (pledge). If this happens, the security right will not be transferred to a third party.

3. Borrowers who borrow new loans and repay old ones are unable to repay bank loans due to temporary turnover difficulties, and some banks revitalize non-performing assets by borrowing new loans and repaying old ones, renewing loans and not repaying principal, and restructuring debts.

Four. According to Article 195 of the Property Law, "If the mortgagee and the mortgagor fail to reach an agreement on the way to realize the mortgage, the mortgagee may request the people's court to auction or sell the collateral." Article 220 stipulates: "If the pledgee fails to exercise it, the pledger may request the people's court to auction or sell the pledged property." Therefore, if the bank can't reach a written disposal agreement with the pledgee, it can realize the security interest through court auction, sale auction and sale of the pledgee.

Verb (abbreviation of verb) court action It is a common practice for banks to recover non-performing loans through court action.

There are two main ways to transfer non-performing assets, one is package (batch) transfer, and the other is single-family transfer. Whether it is the transfer of non-performing assets in batches or the transfer of single households, it is a way of transferring creditor's rights. According to Article 80 of the Contract Law, "If the creditor transfers its rights, it shall notify the debtor. Without notice, the assignment is invalid for the debtor. " Therefore, the assignment of creditor's rights without notifying the debtor has no effect on the debtor, but it also affects the effectiveness of the creditor's rights assignment agreement.

The author thinks that the range of transferees of non-performing assets should be expanded. According to Article 3 of the Measures for the Administration of Batch Transfer of Non-performing Assets of Financial Enterprises, "Batch transfer refers to the act that financial enterprises package and transfer non-performing assets of a certain scale (10 households or more) to asset management companies". Therefore, at present, the non-performing assets of financial institutions are mainly transferred to Huarong, Great Wall, Dongfang and Cinda in batches.

In practice, there are generally three types of recipients of non-performing assets: 1. Security drive. The guarantor shall be liable for repayment of the debtor's debts in accordance with the law and the contract. After the guarantor receives the bank's creditor's rights, on the one hand, he is exempted from the guarantee responsibility, on the other hand, he can reduce the loss through recovery; 2. Interest rate drive. The interest rate of bank loans plus penalty interest is much higher than that of ordinary wealth management income, so buyers will buy non-performing assets from banks in order to obtain high income. Moreover, some borrowers and guarantors have temporary cash flow difficulties, or collateral cannot be sold temporarily due to policy guidance, but banks are under pressure to evaluate non-performing assets and the collection time is limited, so buyers can obtain expected high returns by purchasing non-performing assets. 3. Asset-driven. Some buyers value bank collateral, believing that there is room for appreciation, and take purchasing non-performing assets as a means to obtain collateral at a low price. No matter for what purpose, in order to avoid moral hazard, non-batch transfer should adopt open and compliant process operations, such as full transfer, auction and listing for sale.

Seven. Pre-tax deduction of loan losses According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Pre-tax Deduction of Agricultural Loans of Financial Enterprises and Loan Losses of Small and Medium-sized Enterprises (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.20 1 5 No.25, hereinafter referred to as the Announcement of Pre-tax Deduction of Loan Losses), if the financial enterprises and small and medium-sized enterprises have been involved in agriculture for more than1year and cannot be recovered after recourse, the loan losses shall be calculated and confirmed according to the classified vouchers of agricultural loans and loans of small and medium-sized enterprises, and charged before tax. The court sealed up, detained, frozen, etc. All belong to the way for the applicant to pursue the creditor's rights through judicial channels.

To sum up, banks have a general understanding of the disposal of non-performing assets, and in the sixth disposal method, the state has the latest notice on the batch transfer of personal non-performing loans, and the next signal is how important it is to us ordinary people:

202 1 65438 10 On 7 October, the General Office of China Banking Regulatory Commission issued the Notice on Launching the Pilot Work of Non-performing Loan Transfer (Yin Bao Supervision Note [2021] No.26). Officially approved the pilot units to carry out bulk transfer of personal non-performing loans.

The pilot banks include six large state-owned banks (see attached table 1 for details) and 12 national joint-stock banks; The acquirer includes five major financial asset management companies and qualified local asset management companies (local AMC) and financial asset investment companies (AIC). (That is to say, A, you can write off your debt at the pilot bank with a discount of 2.5%. B If you want to be the executive office for the disposal of non-performing assets, you must first get the approval of the five AMC)

The pilot types of personal non-performing loans include personal consumption credit loans, credit card overdrafts and personal business credit loans (note: personal housing mortgage loans, personal consumption mortgage loans and personal business mortgage loans are not included in the pilot scope) (in other words, 2.5% discount is a bubble debt).

The "Pilot Notice" pointed out that asset management companies can only take measures such as self-collection and reorganization to dispose of personal loans acquired in bulk, and it is strictly forbidden to entrust institutions with records of illegal acts such as violent collection of black crimes to carry out collection work. (meaning: you can't cancel the executive office with a 25% discount if you are not innocent)

Asset management companies may not transfer personal loans again after purchasing them. It is a very big difference to prohibit the acquisition institution from transferring personal loans to the outside world again, compared with transferring corporate loans, which will greatly limit the ways of collection. Personal loan debts acquired by asset management companies will only rot in their own hands if they cannot be recovered.

The "Pilot Notice" puts forward that "local asset management companies accept personal non-performing loans in batches without geographical restrictions", which is also a major breakthrough in the non-performing asset management industry. Local asset management companies can participate in the primary market of personal loan bad batch transfer business, which can be carried out nationwide. Although the office is located in Shenzhen, it is not subject to geographical restrictions.

Banking credit assets registration and circulation center ("Yindeng Center") (meaning: everyone can believe the information released by Yindeng Center)

2022-07-20 Notice of the Ministry of Finance on Further Strengthening the Financial Management of State-owned Financial Enterprises (Jin Cai [2022] No.87) should intensify the write-off of non-performing assets and make full use of the existing write-off policy. (meaning: 2.5% write-off is a wise measure that conforms to the national conditions, benefits the country and the people, and can solve the current predicament, and should be vigorously promoted)

2022- 12-29 Notice of the General Office of China Banking Regulatory Commission on Launching the Second Batch of Pilot Work of Non-performing Loans Transfer (Memorandum of Yin Bao Supervision Office [2022] No.65438 +0 19 1), on the basis of the original scope of pilot institutions, this time it was included in the Development Bank, the Export-Import Bank and the Agricultural Development Bank. City commercial banks and rural small and medium-sized banks registered in Beijing, Hebei, Inner Mongolia, Liaoning, Heilongjiang, Shanghai, Jiangsu, Zhejiang, Henan, Guangdong and Gansu will be included in the scope of pilot institutions. Village banks can do it now, but they used to be city banks. However, basically, the release and implementation of each measure takes a quarter. So you can look forward to it)

202 1-03-0 1 The year after the promulgation of the Regulations on Individual Bankruptcy in Shenzhen Special Economic Zone: * * 103 1 individual bankruptcy applications were reviewed, 74 cases entered the bankruptcy application review procedure, 25 bankruptcy procedures were initiated, and individual bankruptcy cases were concluded1. The examination conditions of personal bankruptcy are extremely harsh, time-consuming and labor-consuming, and it is exhausting, so it can't be widely promoted and can't solve China's debt problem. (Through the parallel comparison of the two policies, it finally shows that the 2.5% discount treatment is more suitable for China's national conditions, and it is being widely promoted at present. )

In short, the rise of non-performing assets in banks will inevitably lead to the disposal of non-performing assets, and the disposal of personal non-performing assets is directly related to the quality of life happiness index of 800 million indebted people in China. We also believe that under the leadership of the * * * production party in China, debtors will be able to go ashore smoothly, the people will be better and better, and we will make the country rich and strong!