First, if and only if the objective of the reforms is to make the financial institutions stronger so that they can provide better financial services does it make sense to dispose the non-performing assets left over from the past, particularly during the period when the management of the enterprises were not separated from government administration.
Otherwise the disposal of non-performing assets would be nothing but transferring the risks from the “left pocket” to the “right pocket” of the government, which will invite criticism from the public. Second, the asset management companies have been established to handle the non-performing assets in a professional way.