Practical Disposal of Non-Performing Assets by Financial Asset Management Companies

Author: Yang Kaisheng
Publisher:
Publish Date: 2004-07-01
Features: It must be admitted that some people have doubts about whether China's financial asset management companies (AMCs) can perform well and achieve the expected goals of mitigating financial risks and reducing final losses. Many people often compare China's AMCs with the U.S. Resolution Trust Corporation (RTC), and some have even declared that China's AMCs are inferior to the U.S. RTC. In my opinion, drawing such conclusions now is premature; some issues need time to become clearer through practice. Second, a more in-depth investigation and research into the operations of RTC are necessary, avoiding hearsay. Recently, I traveled to the U.S. and specifically visited the executive director of the RTC Asset Sales Office (who was once responsible for nationwide asset disposal for RTC) to ask him directly about the relevant issues. Although I cannot say that I have fully understood the operations of RTC, this meeting certainly greatly strengthened my confidence. We have every reason to say that in the past two years, China's AMCs have not performed worse than the U.S. RTC!