Research On The Impact Of Chinese Commercial Bank Credit Expansion On Credit Asset Quality

After the global financial crisis in 2008,the global economy is in a downturn,China’s global financial turmoil to further expand domestic demand and promote stable and rapid economic growth,the Chinese government has introduced 4 trillion economic stimulus.Commercial banks follow the loose monetary policy and sound fiscal policy under the guidance of macroeconomic policies,credit scale expand,credit growth accelerated,commercial banks credit expansion growth reached nearly 20 years the highest peak in 2009,the credit scale up to 800,000 Billion yuan.In 2014,China’s economy entered in New Normal,under the three superimposed economic development trend of phase shift of economic development,the throes of structural adjustment,the phase of early stage of the stimulus,commercial banks influenced by financial disassociation,deposit and loan spread narrowed,Internet finance,Private loans at the same time,the scale of credit expansion growth decline.Commercial banks pursue for the interests of enterprises at the same time cooperate with the macroeconomic policy of transmission actively,to ensure the healthy and stable development of national financial markets.China’s banking industry is moving towards internationalization and commercial banks’ "going out" strategies are in a period of rapid development.The prosperity of banking industry will inevitably lead to the expansion of credit assets,and the credit expansion of commercial banks will bring about the risk of credit assets.July 2016 held the "China Banking Development Forum",the meeting pointed out that after the reform of state-owned banks to write off non-performing assets,the reform of China’s banking sector in 2004,Chinese commercial banks will face a severe macroeconomic downturn,rising non-performing assets and profitability pressures and so on,the banking industry should seize the opportunity of interest rate liberalization and the RMB internationalization and other good opportunity to get rid of business difficulties,to achieve the banking industry innovation and transformation.October 2010 IMF released the "Global Financial Stability Report" pointed out that the global financial stability of the rising risk of China’s economic growth and transformation of the uncertainty to increase the development and changes,leading to tightening financial conditions,risk appetite decline,credit risk,Balance sheet repair blocked,damage to financial stability.Credit assets,which are known as the lifeline of commercial banks,are the main resources that can bring forward the future economic benefits and the development of the industry.The quality of the credit assets directly affects the management benefit and long-term development of commercial banks.In the context of the tight macroeconomic environment,the rapid expansion of banking credit and the risk of credit assets,people are more concerned about the relationship between credit expansion and the quality of credit assets.In this paper,the credit expansion and the credit assets quality are closely linked to each other to study the impact of the credit expansion on the credit assets quality of commercial banks,and carry out in-depth theoretical and empirical analysis for China’s commercial banks Credit expansion,to make effective recommendations about commercial banks to "going out" and ensuring good credit asset quality,improve the level of resource allocation,improve the level of credit asset management,reduce the rate of non-performing loans at the same time.