The Analysis Of The Impact Of China’s Monetary Policy Changes On Non-Performing Loans Of Commercial Banks

Since this year, the media reported on the bank’s non-performing loans more and more, we can see that the problem of non-performing loans in our country is very serious. At the same time, we can find that the problem of non-performing loads of banks has been widely concerned by the media and the public. Non-performing loans has been a major problem in the development of China’s commercial banks, which affects the development of our national economy. If we can not properly deal with it, it will not be conducive to the implementation of the reform of the banking industry in China. In recent years, our country has carried out the loose monetary policy, During this time, the rate of non-performing loans of China’s banking sector also showed a rising trend. Therefore, it is very important to analyze the relationship between them.The research framework of this paper is to analyze the causes of non-performing loans through the classical theory of research and analysis. And then according to the new situation, in the situation that the government has continued to implement the loose monetary policy and the non-performing loans continue to increase, put forward and analyze our own problems. This paper analyzes the impact of monetary policy on bank non-performing loans. Analysis of the impact of monetary policy on non-performing loans of commercial banks, And then through an empirical approach to verify our problem. In terms of data, we have to deal with the impact of inflation on the data. We choose the monetary policy:the broad money supply, the statutory deposit reserve ratio, and the bank loan balance. The method used in this paper is the method of VAR. Through the study, we draw the following conclusions:The legal deposit reserve ratio and bank loan balance are negatively correlated with the rate of non-performing loans, while the broad money supply is positively related to the non-performing loan ratio. We can also conclude that the legal deposit reserve ratio in these monetary policy variables is the most influential in the bank’s non-performing loans. Finally, we put forward the relevant policy recommendations based on the results of our empirical analysis. We believe that in all aspects of joint efforts, China’s commercial banks non-performing loans can be effectively resolved, which is conducive to the healthy and stable development of China’s national economy.