| dc.description.abstract | Abstract
Ever since bank privatization in 1991, bankers tried to gain customers turned furious by ways of price war and even ignoring credit risks. What it caused was not only the extreme predicament for the overall banking industrial, but also the increasing rate of NPL (non-performing loans).
In particular, the NPL ratio reached 11.27% in 1991. However, the non-government owned research organizations indicated that the NPL ratio was actually more than 20%
The huge amount of non-performing loans causes the quality deterioration of banking assets, as well as the corrosion of banking net worth. Further more, it effects the banking operation.
For example, jillion NPL leads to financial institutes’ conservativeness on granting loans. What follows is the credit stagnation, and venture capital liquidity inconvenience. Eventually, it harms the financial development of our nation.
Therefore, it would be great to have the effective management on NPL so that we can accelerate the return of loans, improve our financial mechanism, stabilize the overall financial system, and it will benefit both the financial institution’s financial structure and enterprises management.
This study expects to suggest a preventive and effective system for dealing with NPL. | en_US |