| Summary: | 碩士 === 中原大學 === 會計研究所 === 90 === Banking has become a drastically competitive industry since Taiwan government approved the establishment of new banks in 1991. Recently, due to the depression of real estate industry, the abatement of competitiveness of traditional industry, and the excessive competition among banks, the ratio of non-performing loans have reached the highest peak that have never seen before. The quality of assets has also been worse off rapidly. These phenomena all influence the operation ability of financial institutions.
In order to establish the mechanism of financial institutions to deal with non-performing loans, the Ministry of Finance legislated for the provisions of asset management company (AMC) not only to deal non-performing loans effectively but also to improve the quality and liquidity of assets of financial industry.
The purpose of this paper is to analyze the current situation of non-performing loans, introduce the concept of asset management company, and describe the framework of asset management company in Taiwan. We also study and illustrate the accounting process for financial assets translation of Financial Accounting Standards Board. Our study provides the domestic financial institutions with valuable reference in dealing non-performing loans.
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