What is a Bad Bank?

Banks cannot restructure assets on time and in full. Part of the bank's credit assets formed after the bank's loan is not in compliance with the principles of safety, liquidity and efficiency are overdue, sluggish, and bad debts, and are at risk.

Bank non-performing assets

1.Banks cannot be on time (according to

1. Non-performing credit assets formed due to the divestiture of the system. The state should use a piece of institutional resources to compensate for the institutional arrears of banks and enterprises. Changing loans to investment means that enterprises cannot return bank loans to investment in enterprises. It mainly refers to some issues related to the national economy, people's livelihood, and social stability Of large companies defaulting on loans.

2. Professional banks are corporatized. The corporatization of professional banks aims to establish a business mechanism with clear property rights, clear responsibilities and rights, and no government intervention, and "autonomous operation, self-risk, self-balancing, self-restraint, self-financing, self-development". Adhere to the principles of liquidity, security, and profitability of funds, and establish state-owned commercial banks that comply with commercial principles from system to function.

3. Establish a state-owned enterprise group and promote enterprise asset reorganization. An enterprise group is a form of enterprise organization that meets the requirements of the scale economy of modern productivity. Production into scale, the lowest cost, and the best efficiency. Not only does it gather huge productivity through unity, it produces a combination effect that is difficult to achieve by a single enterprise, and quickly meets the requirements of modern economies of scale. At the same time, its organization method fully reflects the flexibility of the commodity economy. Operating requirements. With a rapid advanced development pattern, enterprise groups develop faster than any other organizational form and play a greater role in economic life.

There are two main ways to form an enterprise group company with economies of scale and intensive production: one is to expand the scale of a single enterprise, the other is to reorganize the company through mergers and acquisitions. Form a powerful group company, which has become the mainstream of group companies that meet the requirements of the development of the market economy.

The government must provide strong leadership and planning for the company's asset reorganization work, and reorganize and allocate resources through joint ventures, cooperation, grafting and other methods to achieve the restart of resources. At the same time as reorganization, the bank's creditor rights must be implemented to achieve the activation of credit The purpose of the asset.

4. Strengthen bank credit management. The prevention and management of credit asset risk lies in the pre-lending investigation, the lending review, and the post-lending inspection of each loan. To strengthen credit management, a loan management responsibility system must be implemented. The first is to clarify the responsibilities of relevant personnel, and establish a president responsibility system, a system for separating loans from examination, a system for grading approval, and a system for auditing departures to reduce operating risks. The second is to rectify the phenomenon of heavy loans and light pipes, to achieve a fundamental change in the operating mode from extensive to intensive, to improve the level of business management, especially to improve the level of risk management, and to prevent and reduce the occurrence of new non-performing credit assets.

5. Governing loans according to law. First, legally guarantee the commercial autonomy and legitimate rights and interests of commercial banks, and eliminate government administrative intervention in banks. Second, we must support banks to collect loan principal and interest in accordance with the law, and when necessary, use legal methods to evade debts or take advantage of corporate restructuring. Proceedings that erode bank assets, such as non-payment of money and secret auctions of mortgaged items, to safeguard the legitimate rights and interests of banks.