The Research To The Influential Factors Of Our Country Commercial Bank’s Non-performing Loans

The non-performing loans of commercial banks has always been a common problem of commercial banks around the world, and also has been an important factor restricting the healthy development of commercial banks. Many developed countries in the world have been triggered by the financial crisis of non-performing loans. However, China’s commercial banks non-performing loan problem also becomes more and more serious. From 2012 to early 2015 in China, Non-performing loan balance and non-performing loan ratio of commercial banks are both on the rise, forming a massive pile of nonperforming loans. Obviously, the huge non-performing loans has become a key issue of China’s commercial banks need to be resolved.This paper aims to deeply analyze the root causes of bad loans from a macroeconomic level, bank management level and popularize the livelihood of the people of the real estate market level, and then finding out the relevant factors, analyze the significance and contribution rate. Finally, according to the empirical results, this paper puts forward policy suggestions. Literature review method, comparative analysis and the combining of theoretical analysis and empirical analysis research methods are adopted in the paper. Specifically, the factors which affect China’s commercial banks non-performing loans are the main line Firstly, combing the existing research literature systematically, systemizing non-performing loans related basic theory, and interpreting the formation mechanism of non-performing loans。 Secondly, descriptive analysis on the related factors influencing of the non-performing loans, so as to foreshadow for the following empirical theory. Finally, China’s 17 listed banks’ latest quarterly data from 2008 to 2014 are chosen, multiple linear regression model is established to do the empirical analysis, so as to find out the significant factors influencing the non-performing loan ratio.The main conclusions of this paper are as follows:under the macro level, the GDP growth rate, loan interest rates, money supply M1, and the total impact of the loan, is the negative correlation with non-performing loan ratio. Non-performing loan ratio is also associated with the exchange rate of RMB, with the appreciation of RMB, the non-performing loan ratio drops. Non-performing loan ratio and provision coverage levels are negatively correlated. Housing prices showed a negative correlation with non-performing loan ratio. However, the capital adequacy ratio and the level of inflation does not significantly affect the rate of non-performing loans. Finally, according to research results, policy recommendations are provided for the disposal of bad loans and effectively control the increase in non-performing loans, which is of great significance in case of China’s commercial banks for the prevention of non-performing loans increased, reducing the potential risk of banks, and promoting the stability of finance.