Study on Disposal Classification of Non-Performing Loans for Farmers’ Associations

• Main Authors: Chao-Chi Li, 利兆奇
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/52208842630342485664

碩士 === 立德管理學院 === 地區發展管理研究所 === 94 === Non-Performing Loans (NPLs) enormously influence the operation of Farmers’ Associations. Currently the major approaches that Farmers’ Associations managing NPLs disposal are either pressed by credit department or outsourced as receivable loans. Problems of NPLs have not been solved. Numerous studies in the past suggested that NPLs disposal should be appropriately classified to increase the efficiency of recuperation. This research will focus on designing standard of NPLs classification. Current standard of NPLs classification applies overdue and collateral as two major criteria. As a result, the majority of NPLs belongs to “receivable loans” and in fact, market value of collateral NPLs is too low to be auctioned and disposed. This is because current standard of NPLs classification is way too optimistic and apparently does not consist with reality. This research intends to design NPLs classification indicators for Farmers’ Associations according to global classification standard, credit rating concept, credit verifying, credit granting, debt pressing, and the principle and experience that are currently utilized globally. The designed classification indicators include criteria of overdue and collateral, as well as the amount of credit loans, willingness and ability of debtor, and creditor’s guarantee. These indicators are weighted and the calculated results are used to design alternative disposal approaches.