Analysis On Influencing Factors Of Banking Non-performing Loans In China

Since 2013,both balance and ratio of non-performing loans in our country have been increasing,and the risk of commercial bank loans continue to increase,so asset quality of banking industry in our country is worse.The influence factors of non-performing loans in China have also changed in the new economic situation.Analyzing the influence factors of non-performing loans is of great importance for our country to resolve the non-performing loans effectively.First of all,this paper defines conception and connotation of non-performing loans,listed on the relevant theories of non-performing loans.Then this paper from two aspects of external environent and banking internal factors analyzes the causes of the formation of non-performing loans,and also analyzes the current situation of non-performing loans in our country,we can find that non-performing loan ratio is higher,non-performing loans grow fast,and industry concentration degree is high,which have an important significance to further analyze the influence factors of non-performing loans in our country.Through analyzing the causes of formation of non-performing loans and the current situation of non-performing loans,we can find that because of external environment changing,our country banking non-performing loans have continued to rise in recent years.So using panel data of 30 provinces from 2007 to 2014,this paper chooses the selection of non-performing loans to be explained variable,the growth rate of the CRB index,growth rate of PPI,the proportion of the income of state-owned industrial enterprises above designated size as the explained variables,marketization index,the GDP growth rate as control variables,and carry on the empirical analysis by establishing random effects model.The research results show that the growth rate of the CRB index and growth rate of PPI have a significant negative correlation relationship with the non-performing loans,and in the private industrial enterprises and state-owned industrial enterprises above designated size,the proportion of the income of state-owned industrial enterprises have a positive correlation relationship with the non-performing loans in the the provinces of our country.On the basis of empirical analysis,combining the reality of the current economicenvironment,this paper further analyzes the influence factors of the non-performing loans of the banking industry in our country.In recent years,the international commodity prices continue to fall sharply,which can make the price of commodity in our country fall by price conducting mechanism,which causes the economic benefits of the commodity imported and exported enterprises and producers has fallen sharply,so the ratio of banks' non-performing loans is rising.Industries such as Iron and steel and coal have serious overcapacity,and manufacturing is weak,which cause the PPI fell sharply,the loss of relevant industry enterprises is serious,so they cannot repay loans,then non-performing loans form.The proportion of state-owned enterprises in our country is higher,and mostly belongs to heavy industry with serious overcapacity,the production efficiency is far lower than the private enterprises and the loss is serious,government support state-owned enterprises to develop,the income of state-owned enterprises may squeeze the income of private enterprises,which may hinder the development of private enterprises.So the proportion of the state-owned enterprises' income increases that does not reduce non-performing loans,it will lead to the increase of non-performing loan ratio.On the basis of in-depth analysis of the influence factors of non-performing loans In the banking industry in our country,this paper from two aspects: government and commercial banks put forward effective measures to resolve the problem of non-performing loans.Government level including speeding up to remove the excess capacity tasks of industry enterprises,optimizing the structure of the imported and exported commodity,enhancing the added value of the export products,speeding up the reform of state-owned enterprises,making private enterprise dynamic,to strengthen the supervision and service function for bank system and so on.Commercial banks level include strengthening the research of the economic situation and national policy,deciding reasonablely the loan orientation and so on.Finally,this paper carried out on the full text summary and outlook.