Now the company also receives and disposes of the non-performing assets of other financial institutions and non-counterpart banks.
Extended data
The establishment background of the four major asset management companies:
Since 1 and 1990s, especially after the Asian financial crisis, governments all over the world have generally attached great importance to the problem of non-performing assets of financial institutions. China state-owned commercial banks are an important part of the financial system and one of the main channels for raising, financing and distributing social funds. They have provided strong support for economic development for a long time, and their stable development must be ensured.
2. 1995 Before the promulgation of the Banking Law, state-owned banks operated in the mode of specialized banks, and their credit business was heavily policy-oriented. In addition, due to the overheating of the economy in the early 1990s and the lack of effective internal mechanism and good external environment to control the quality of loans, a certain scale of non-performing loans has emerged.
3. Before 1993, the bank never made any provision for bad debts, and did not write off the losses of bad debts, which led to the continuous accumulation of non-performing loans and the gradual rise of financial risks, which became a major hidden danger in economic operation. If not resolved, it may endanger the financial order and social stability, and affect the next development and reform process of China.
Baidu encyclopedia-China Xinda asset management company