Certainly, the low recovery rate can be partially attributed to internal incentives, bureaucratic working style and ineffective work with the AMCs. But the impact of inadequate legal system on low recovery rate as well as on national economy should not be underestimated.
This is not only because 1 trillion yuan worth of NPLs were transferred to the AMCs but also that Bank of China and the China Construction Bank transferred another 300 billion yuan NPLs at market price to Sinda AMC. Similar things will happen in the reform of the Industrial and Commercial Bank of China and the Agricultural Bank of China.