Research On The Economic Impact Of Non-performing Loans To Commercial Banks

Rising into the21st century, economic globalization is being the trend, the economic ties between countries are also increasingly connected, the financial market is very active, capital rapid flow in the global scope, scale shows a trend of widening and asset price volatility, each country’s financial system is facing very serious test, the non-performing loans of commercial Banks become the focus of social attention. The scale and amount of current non-performing loans of commercial Banks in China are growing, on the one hand,it will be a serious threat to the normal operation of bank, the bank can’t withdraw the principal and interest on time and make bank profitability is abate, credit level by financial market turmoil; On the other hand, it may also affect the development of national economy, when the bank system has trouble, it will quickly spreads to the real economy, then it will affect the manufacturing industry and the tertiary industry seriously, and affect the proceeding of the national enterprise restructuring, in order to solve the problem of non-performing loans of Banks at the same time, it need a lot of money, which in turn increases the government’s financial burden. This paper first analyses the basic theory of commercial bank non-performing loans, then it introduces the concept of non-performing loans and classification, it study in detail the reasons for the formation of bad loans from the credit system, such as bank behavior, and then through the empirical analysis, we discusses the influence of bad loans, including impact on GDP growth, investment, and the money supply, finally from three aspects:internal and external environment, the credit system,we put forward the solution to solve the problem of non-performing loans in our country.