What is the way to deal with non-performing assets?

Non-performing assets is a general concept, which is aimed at accounting bad debts, mainly but not limited to the non-performing assets of banks, as well as the non-performing assets of governments, securities, insurance and enterprises. So what is the way to deal with non-performing assets?

1. The simplest mode is buyout. After the bank packages the non-performing assets, it will transfer them to the asset management company in batches. According to the size of the asset package, the asset management company can take a one-time buyout or a phased buyout. The phased acquisition can alleviate the financial pressure of asset management companies to some extent.

2. Cooperative disposal. In the stage of receiving non-performing assets of state-owned banks, asset management companies will have a preliminary understanding of debtors, but they cannot go deep into the industry. At this stage, we can unite high-quality enterprises in the same industry, reorganize non-performing assets, and finally realize the purpose of benefit sharing.

3. Anti-entrustment disposal. After the asset management company buys out the bank's non-performing assets package, it resells the income right of the assets to the trust plan or the brokerage asset management plan. The ownership of assets still belongs to the four major asset management companies, and asset management companies continue to be responsible for the disposal of non-performing assets.

4. Securitization of non-performing assets. After the asset management company buys out the bad asset package from the bank, it takes the form of discount by calculating the cash flow, takes the trust plan as SPV, and then issues the restructured asset-backed securities and sells them to investors.

At present, the transfer channels of non-performing assets include financial asset exchanges, Internet platforms and investment funds. Insurance, securities and small loan companies are also expected to enter the transfer channels of non-performing assets in the future.