金融类外文翻译--不良贷款的管理和回收(编辑修改稿)

金融类外文翻译--不良贷款的管理和回收(编辑修改稿)内容摘要：

fit at a later date. At that point, banks can sell their shares, and reap significant profit to bolster capital. All of this makes more sense given the current downside risk, which is limited, as most of these transactions are paper transactions that do not further impair bank liquidity. But bank equity swap may be indicative of the failure of banks in some countries to properly define bank39。 s roles as financial intermediaries, streamline their operations, specialize in a few key areas within the limit of their current managerial and staffing capabilities, write down their assets to more accurate values, and progress toward a more stable and prudently managed system devoid of excess risk. Investment in losing enterprises raises the risk of future liquidity being drained to prop up these enterprises in the hope of eventual profitability, which puts depositors and shareholders at risk. In addition to debtequity swaps, loan sales swaps are an option that could be used to restructure bank balance sheets. However, this option has not been monly found in transition economy due to absence of secondary market development. 6. Securitization of Nonperforming Loan Nonperforming loan securitization is a pooling of nonperforming loans packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. Nonperforming Loans are also known as bad loans, overdue loans, receivables under collection, and loans still under normal payment statuses, but with circulating bonds rated lower than CCC level. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as debtors39。 locations, credit period, currency, and overdue ratings from all available nonperforming loans. After the screening process, bank will proceed with the risk assessment, cash flow simulation and credit tranche. The securities are then offered to investors after confirmation from credit rating agencies and regulatory approval obtained. The asset management agency is particularly important to a nonperforming loan securitization since the asset management agency39。 s expertise is instrumental to increasing collection rates of these nonperforming loans. Investors39。 risks are minimized through credit enhancement techniques。 default risks, prepayment risks, etc. are also emphasized to evaluate the risk profile of nonperforming loans. 5 7. Incourt Bankruptcy / Liquidation Proceedings Resorting to legal procedures to collect the repayment of nonperforming loans is the last defense line. In practice, banks should grasp the timing of litigation. Because blind lawsuits will involve banks39。 time, energy, money and people. In addition, they could have negative impact on the relationship between banks and their clients. Firstly, before litigation, banks should investigate the borrowers39。 ine resources and asset categories and prevent them from hiding or transferring asset in this period of time. Banks can apply to the court for asset preservation. Secondly, banks should try best to correct the deficiencies of credit documents and win themselves advantageous conditions in litigation. Thirdly, banks should also prepare themselves for the results of reconciliation or failure. Bankruptcy/liquidation is an effective plement to outofurt approaches, and serves as a last stage of debt collection, providing creditors with control over debtors in financial distress and prompting their restructuring. For this reason, many countries (transition economies) have developed and are seeking to expand the use of formal bankruptcy to broaden the array of dispute resolution mechanisms, provide banks with long needed recourse, and instill greater financial discipline on enterprises. 8. Exercise of Collateral When a debt matures or is going to mature and the debtor has encountered serious operation difficulties, the debtor cannot repay the loan in cash and the guarantor cannot repay the loan in cash either. Maybe after negotiation, the two pa。