Many of the above relate to the legal problems in our financial ecological environment. For instance, looking at the bank-enterprise relationship, the Chinese enterprises have high financial leverages with low self-owned capital and relying mainly on bank lending. Can banks completely rely on external information or have to resort to internal information to some degree?
When default happens, would the legal arrangements be helpful to protect creditor rights and minimize the losses? Risks in the economy make the forming of NPLs unavoidable, yet in the process of disposing of NPLs, how much control do banks have as the creditors? As for the bank-enterprise relationship should it be control-oriented or be at-arms-length?