And establishing the bad debt risk consciousness, building and perfecting t he internal control system for the receivable account, and strengthening the dai ly management of the receivable account are the effective methods and means for the management and control of enterprise's receivable account.
Information asymmetry results in the bad assets of bank systemThe key solutions of keeping away from financial risk depend mainly on eliminating the problem of information asymmetryMeasures such as implementing house-bank system,establishing reputation mechanism and perfecting internal controlling system of bank should be takenAt the same time,the regulation of legal mechanism as well as the construction of bad debt reserve system are equally importantGovernmental supervision cannot be ignored
This text structures Keynes' doctrine model after one on the basis of summarizingforefathers, analyze mathematics about Minsky's classification, and has done a simple discussion to financialfragility and bank bad debt.
Firstly this text introduced the Non-Performing Loans actuality of HB commercial bank, which included huge Non-Performing Loans balance, high Non-Performing rate, high bad debt rate, and large difficulty of treatment. It also analyses the cause of formation of Non-Performing Loans in HB commercial bank on the aspects of government decision, economy system, enterprises credit, and interior management of HB commercial bank.
So the crucial task at present is to recognize and analyze what cause this deterioration and then to take some effective countermeasures to improve the social credit condition, which is helpful to realize the strategic transfer from "bad debt economy"to credit economy.
From the management of evil loans and uncollected interests, taking of loan bad debt preparation fund and revealing of information shows that, under the accounting system, 8% is of only book value but without any actual value to state - run commercial banks.
The banking industry's ability to handle the continuing bad debt problem, in the face of a significant impairment of economic capital and the market's relentless drive for full disclosure and transparency, also is assessed.
In particular, it highlights the extent to which "accounting forbearance" has been, and continues to be, used to mask the true level of the banks' bad debts and refutes the claim that the industry's bad debt burden peaked in 1995.
This article explains the evolution of bad debt disclosure by the Japanese banking industry and assesses the significance of the latest figures.
When the asset price collapse occurred during the sharp postwar slump, most of the banks collapsed under the burden of bad debt.
The huge amount of bad debt in the financial system suggests a failure of the banks' monitoring function.