Multi-win -- Successful Practices and Theoretical Reflections on Bulk Disposal of Bad Loans

Author: Zhang Shiming
Publisher:
Publish Date: 2005-02-01
Features: Non-performing loans are the source of risks and obstacles to progress for commercial banks, a fact widely recognized in the international financial community. In China, the issue of non-performing loans is an even greater barrier to the reform of commercial banks, especially state-owned commercial banks. With extraordinary wisdom and courage, the Tianjin Branch of the Industrial and Commercial Bank of China, with the support of various parties, broke new ground and proposed the idea of "using future reserve provisions to address current non-performing loan losses" with an innovative spirit. With approval from the State Council and cooperation with the Tianjin Municipal Government, they jointly handled the disposal of non-performing loans. In just over a year, they settled a total of 27.83 billion yuan in principal and interest of non-performing loans, achieving a comprehensive recovery rate of over 30%, and realizing a win-win situation for banks, governments, and enterprises. This book provides the first detailed and in-depth disclosure of the entire process of this work, making it a valuable reference for the industry and academia.