Research On The Disposal Of Non-performing Loans Of Agricultural Bank Of China Under The New Normal

In the past the national economy maintained a rapid growth,the bank invested 4 trillion to social funds to stimulate economic development,enterprise expansion through the bank credit funds,overcapacity in some industries,companies with high leverage.With the slowdown of national economy,the transformation and upgrading of industrial structure,China's economy has entered a new normal.In the context of the new normal national economy,the bubble,high leverage various types of economic risks gradually appear,destocking,to the production of economic transformation and upgrading,accelerated risk exposure.The risks are transmitted among the various economic entities,and the enterprises are difficult to operate and can not repay the bank loans on time,resulting in a large amount of overdue loans.The bank has adopted some measures,such as extending the period,borrowing new loans and returning the old ones,delaying the entrance of some of the credit funds into bad form,and another part of the overdue loans entering bad forms.The credit assets of banks have a high growth rate of non-performing loans,the potential risks of the stock credit funds are larger,and the risks of off balance sheet business appear.Agricultural Bank of China is one of the four major state-owned commercial banks in China,in the context of the new normal economy,the balance of non-performing loans of Agricultural Bank of China is higher,and the growth rate of non-performing loans is faster,and the pressure of bad loans is greater.Therefore,access to the annual report of the Agricultural Bank of Chinese over the years,business data analysis and other state-owned commercial banks by comparison,analysis of agricultural bank non-performing loans over the years China trend,focus on the five traditional industries,and the western region of bad loans double up trend is more obvious.According to the credit business characteristics of Agricultural Bank,combined with macroeconomic development,analysis of the reasons for the formation of non-performing loans.On the one hand,affected by the economic downturn,overcapacity,high leverage exposure,the enterprise production and operation difficulties,failed to repay the principal and interest of bank loans.On the other hand,the internal management of banks needs to be strengthened,and outside forgery of false data to defraud bank loans is difficult to implement.Extensive credit management,the implementation of the responsibility is not in place,the lack of effective collection measures.Extensive credit management,the implementation of the responsibility is not in place,the lack of effective collection measures.The newly formed non-performing loans have increased rapidly,and the disposal of the stock non-performing loans has been adversely affected.The non-performing loans of the Agricultural Bank of China have been faced with a large base of non-performing loans and the rapid growth of non-performing loans.The pressure drop of the bank's non-performing loans,a bank need to strengthen the management of the stock of credit funds,in normal,interest loans taken to resolve the risk prevention measures to create new bad loans;on the other hand,through the verification of securitization,our means of transfer of non-performing loans drop.However,when dealing with bad loans,banks have a long time cycle and inefficient disposal,and can not effectively reduce non-performing loans.Through the judicial litigation recovery of non-performing loans,the judicial process is complex and time-consuming,and the property aspects of the implementation of single mode,poor implementation,poor recovery effect.Some of the bank debt difficult to implement,failed to be effectively disposed of,long-term use of economic capital added value.Through bad loans granted by the company,the bank's pricing power is not strong,the transaction price is lower than the fair value of the market,and the recovery rate of non-performing loans is low.The lack of innovative capacity of non-performing loans,lack of related legal support,inadequate government participation in non-performing loans.Referring to the domestic and foreign documents on the disposal of non-performing loans of commercial banks,according to the relevant policies promulgated by the state in recent years and the spirit of the Central Committee on the prevention of financial risks.This paper summarizes the main viewpoints and theories put forward by the domestic and foreign theorists in the prevention and control of non-performing loans in commercial banks in recent years.According to the Agricultural Bank of China's non-performing loan disposal status,both to prevent new loans,but also to strengthen the disposal of non-performing loans,while the government should strengthen the social credit system,improve the supporting judicial practice.The disposal of non-performing loans to the use of traditional model of disposal: disposal of verification,our cooperation in long-term loss of bad loans,non-performing loan disposal mode innovation,to carry out exploration in Securitization and the debt to equity swap is expected to recover the high rate of disposal of non-performing loans,non-performing loans to improve the comprehensive recovery rate.