Empirical Study On The Influencing Factors Of Non-performing Loans In Village Banks

As an important part of the new village financial institutions,village banks have added new vitality to China's village financial market system,helping to solve the problems of low coverage of financial institutions in village areas,inadequate competition in the village financial market and insufficient supply of credit.However,due to such innate factors as short development history,lack of market experience and imperfect internal management,village banks have small scale of deposit and loan business and weak ability to deal with credit risks.At the same time,as some senior executives of village banks are appointed by the main sponsor bank,the business development direction,risk preference and operation decision are all affected by the main sponsor bank.Once the risk of the main sponsor bank spreads to village banks,regional financial risks in the banking industry may be triggered.Therefore,by analyzing the influencing factors of non-performing loans of village banks and proposing corresponding regulatory countermeasures,it is not only conducive to the supervision and guidance of compliance management of village banks,but also of great practical significance to further study the development direction of village banks in the future.This paper USES during the first quarter of 2008 to the second quarter of 2019,Province A macroeconomic data and local legal person bank data for empirical research,through the steady standard deviation of multivariate linear regression model,and analyze the selection of economic variables to explore bank operation and management factors(main sponsor bank's credit assets status),macroeconomic environment factors(including local GDP,CPI,industrial added value)and the monetary policy factors(benchmark interest rate of loan,currency circulation,local loan balance)the influence degree of the status of village banks credit assets,And further discuss whether there are differences in the influence of different types of main sponsor bank on the credit assets of village banks.According to the analysis results,the loan ratio of the main sponsor bank,the NPL ratio and the special-mentioned loan ratio all have significant influence on the NPL ratio of the village banks,among them,the NPL rate of the main sponsor bank has the most significant influence on the NPL rate of the village banks,and the influence of the different types of the main sponsor bank on the NPL of the village bank is also different.In addition,the macro-economic environmental factors do not appear to have a direct impact on the NPL rate of the village banks,but when it acts on the NPL rate of the main sponsor bank,it can effectively slow down the influence of the NPL rate of the main sponsor bank on the NPL rateof the village bank.In view of the empirical research results,this paper will put forward countermeasures and suggestions respectively from the government level,the regulatory department level and the management level of village banks and their main sponsor banks,in order to promote the optimization of the equity structure of the village banks,improving the quality of assets to achieve sustainable development.