All About Loan Refinanc You Should Know(5)
In short, if mortgage procedures cannot be implemented separately, it should not be treated as loan refinancing. As long as the claim is not fully liquidated, the mortgage may receive a priority settlement on the value of the mortgage exchange.
The impact of loan refinancing on the credit management of commercial banks and counter-measures
As part of the development of China's bank credit activities, loan refinancing loans have long been considered illegal business, until the People's Bank of China in 2000 published and implemented interim measures for the identification of non-performing loans provided for sloan loans can be recognized as a normal type of loans of four conditions, began to recognize the compliance of the refinancing of loans, but for a long time the regulatory authorities on the conditions of processing the loan refinancing was not clear.
The impact of loan refinance loans on credit management of commercial banks
Loan refinance loan is a double-edged sword, if in the operation to achieve strict quasi-person, standardized operation, clear responsibility, strengthen management, in the short term commercial banks will play a certain positive role: First, commercial banks can at least in the form of the implementation of asset preservation measures; However, some loan refinance loans in the implementation of the operation deformation, behavior distortion, has become an important channel for commercial banks to cover up non-performing loans, this part of loan refinance loans in practice will bring greater negative impact to commercial banks, and easily trigger moral hazard.
(1) Loan refinance makes the risk status and internal loss of loans not reflect truthfully and on schedule, delays the exposure of credit risk, to a certain extent causes the quality of bank assets and operating information distortion, and increases the difficulty of supervision of non-performing loans. First, it affects the authenticity of the loan risk classification, the other is that the bank's provision is inaccurate, the actual provision top rate is insufficient, and the third is to make the accruor's income transfer table outside the account, falsely increasing the current recipient of the bank, affecting the authenticity of the operating results
(2) It is not conducive to commercial banks to establish a sound risk prevention mechanism. First, it is not conducive to the improvement of credit management level. Second, it weakens the credit accountability mechanism. Second, it is not conducive to commercial banks to establish a good credit culture.
(3) resulting in a decrease in the liquidity of credit assets. Loan refinance has become a customary way for some banks to deal with maturing loans, resulting in the actual recovery rate of some banks loans is not high, credit assets rely on loan refinance to maintain operation, although this part of the loan is short-term liquidity loans, but the actual long-term occupation of customers, so that bank assets are '.' "curing", resulting in the actual liquidity of loans is not high, it is difficult to really in accordance with the principles of commercialization, marketization reasonable allocation of credit resources, affecting the bank's expansion of new business, new customers, resulting in increased opportunity costs, is not conducive to banks really improve profitability and comprehensive competitiveness
