Discussion On The Causes Of The Large State-owned Commercial Banks' Bad Loans And Improve The Direction

At present, writing-off NPL in the joint stock reform of some the large national commercial banks has reached a station. The banks' assets quality and financial condition has been greatly improved. However, how to preserve the winning and prevent the big rebound ofthe NPL is a serious problem faced the banks.To make the correlative viewpoints more objective, the writerresearched seriatim into 208 representative cases of writing-off NPL in the joint stock reform of some the large national commercial banks, and investigated deeply the internal management problems in the banks which are reflected in the cases, and numerated the influence degree and frequency of these problems against the NPL. Basing on the research of causes of NPL, the paper concludes five laws of controlling credit risk: complete changing in the management mechanism is the key step;centralized, professional and scientific management is the necessary trend;independent examination and approval of loans is the base;constructing of good credit culture is an important condition;training and supervising of the talent team is the guarantee. These five laws is concerning the power of leading, controlling and executing, and should be through the course of the management. Basing on the five laws, the paper proposes a series of reformingmeasures of improving internal management from the angle of enhancing risk management. To preserve the lower NPL rate and prevent the new NPL occurring, it is necessary for the banks to make improvement on such eight aspects as the paper proposes in the last part.