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ABSTRACT
In the domestic banks, the non-performed loans,especially the amount of money and ratios of overdue loans, are enormously increasing. The collection of non-performed loans is the biggest issue and challenge for the domestic banks. Therefore, the purposes of this study are (a) to illuminate the scope and content of non-performed loans in the domestic banks and the reasons for the increase of non-performed loans, (b) to examine the methods of retrieving the non-performed loans and to analyze the retrieving process of such cases, and (c) to propose some effective strategies for the retrieving managements and execution. It is hoped this study will faciliate the retrieval of non-performed loans and reduce the bank loss to the minimum.
The strategies for retrieving management are as follows:1. The structure of the retrieval department should be reformed;2. The professional quality of the retrieval personnel should be enhanced;3. The department director should take the responsibility of retrieval outcome; 4. The policy of granting trust and power should be ended;5. The whole staff should assist in order to speed up the accomplishment of retrieval;6. The retrieval progress should be controlled and the follow-up guidance should be strengthened; and7. The retrieval effects should be evaluated critically.
The strategies for retrieving execution are asfollows:1. Speed up the transfer marketing of bad debts;2. Reclaim actively the rights of transfer marketing for the bad debts; 3. Electronize the sale information and publicize the sale system;4. Trace the progress of the cases of substitute payment;5. Increase the preparation for listing the bad debts;6. Strengthen the connection with the courts;7. Establish the private retrieving companies; and 8. Sell the non-performed loans to asset management
companies.
In such a time of depression and high unemployment, retrieving through lawsuits will be costly to the banks and debtors. It is more practical to have a discussion with the debtors about lenghtening the time for payment. However, if the debtors have decided to give up paying the loans, it is better to retrieve through lawsuits as soon as possible. If there is a bad debt, relevant papers for the transfer marketing of the bad debt should be prepared in the hope of clearing up the non-performed loans and minimizing the ratio of overdue loans. The most feasible way for the domestic banks is to sell the non-performed loans to the asset management company in "wholesale".
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