Study On The Causes And Control Of Non - Performing Loans In Commercial Banks

As China’s economy the coming of winter, financial industry is more and more significant influence on macroeconomic. And banking development and operation of health or not is related to the financial prospects for development.One side is the gradual financial reform, financial innovation, one side is the commercial bank non-performing loans continue to rise, the background is, however, China’s domestic economy has not improved the rising trend, at the same time, Europe and the United States and other brie countries abroad economy also appears larger uncertainty. Facing the complex economic and financial situation, the domestic commercial bank profit growth, and may even single-digit and negative situation, as opposed to a net profit of the scale of the non-performing loans is gradually increase the multiple quarters in a row, a double up. Non-performing loan ratio and non-performing loan ratio is the key indicators of the banking business, bank non-performing loans as a whole have risen sharply, worth on high alert. Prevention and control and resolve the non-performing loans has become the top priority of the bank management. Since the fourth quarter of 2011, China’s commercial Banks non-performing loans and non-performing loans continue to rise, the so-called double litres, continues today, this undoubtedly become the concerns of the banking sector and even the entire financial industry.In this paper, the historical cause of our country commercial bank non-performing loans and the European and American banking industry after the financial crisis continued increase in non-performing loans and analyze the causes of non-performing loans and to distinguish between economic factors and non-economic factors that affect the quality of bank assets. For non-performing loans in our country economic factors, observe the financial volatility too severe harm to the quality of bank assets, from the perspective of commercial Banks based on the service concept of entity economy development, deepen the understanding of the necessity of banking regulation. For non-performing loans in our country has the non-economic factors, economic factors can prevent the managers of commercial Banks used to cover up its own credit management is not prudent behavior, to make the government improper economic regulation.Using quantitative and qualitative methods, this paper analyzes the cause of our country commercial bank non-performing loans and the disposal of non-performing assets of the banking industry practice, and according to the periodic characteristics of the economic and financial development in our country, elaborated our country banking industry faces challengesand controlled through system design.