STRATEGIES FOR DEFINING AND RESOLVING NON-PERFORMING ASSETS IN STATE-OWNED CHINESE BANKS

Given the rapid growth of China's economy and its maturing financial market, state-owned banks have played a crucial role in driving national economic growth and ensuring financial stability. However, this progress has been accompanied by a pressing challenge - the accumulation of non-performing assets (NPAs), which pose significant obstacles to both the banking industry and China's economic development. Therefore, it is imperative to comprehensively analyze strategies aimed at mitigating NPAs in state-owned commercial banks, with an emphasis on seeking more effective resolution mechanisms. This study delves into the institutional environment surrounding NPAs in state-owned banks, including improvements in laws and regulations as well as advancements in financial market structures and legal frameworks. The initial step involves analyzing the current status and manifestations of NPAs within state-owned banks to clarify their ambiguously defined areas. Furthermore, considering China's unique policy context and socio-economic landscape, this study conducts an analysis and comparison of diverse strategies for addressing NPAs from the perspectives of asset quality management, risk-profit equilibrium, and legal regulatory support system. Ultimately, several suggestions are proposed regarding the trajectory of NPA resolution.