The Research Of Present Situation, The Reasons For The Formation And Prevention And Control Of Bad Loads In Jiangsu Sheyang Rural Commercial Bank

In order to make full preparations to cope with the competitive environment of the bank business, the bank should improve the overall competitiveness and adaptability. If the bank could not recover the loans on schedule, the impact could be in many aspects On one hand, it can effectively reduce the capital ratio of Jiangsu Sheyang Rural Commercial Bank, increase the bank assets empty rate; on the other hand, it will increase the debt ratio of Commercial bank. Because the higher the empty rate of Commercial bank, the harder the recovery of the loan principal and interest. High Debt ratio will increase the interest cost. Most of the time, The two play roles at the same time, that will make a bank run behind one’s expenses, reduce the repayment ability of the bank, compress the profit continuously, if the problem become more serious, Bankruptcy is inevitable. Bad debts to the bank continued to increase, bring serious effect, in the face of the huge non-performing assets, asset quality level will continue to decline, so as to increase the credit risk. Bad debts come from the bank, on one hand, will cause the credit capital cannot be repay on schedule, and on the other hand, the bank must pay interest for loans. Thus, the operation benefit is affected badly, bank will become deficit.After Comprehensive analysis of bank assets yield of different national, we find that, if the ratio of non-performing loans of the bank continued to increase, the total profit will go downhill. A great deal of credit funds could not be recovered, what’s worse; it will directly reduce bank liquidity, which will cause the liquidity risk. The occurrence of bad loads means that the banks can’t pay the principal and interest to the depositors easily. Firstly, bad loads mean huge losses, deterioration of profitability. Secondly, The occurrence of bad loads means management and profit ability of the bank drops ceaselessly, depositors will face a serious risk, because once the bank is unable to repay the principal and interest of depositors, depositors will suffered a direct economic loss.In this paper, we will summarize and use the research and literature of the topic, analyzes the cause of bad loads of Jiangsu She yang rural commercial bank, give the corresponding measures. This paper take She yang rural commercial bank as an example, to analyze the causes of bad assets,give suggestion on how to take effective measures to deal with bad credit and to improve the Competitiveness In the financial industry Constantly, we wish this paper will gives effective suggestions, and effectively solve the problem of bad credit assets.