Analysis Of Influencing Factors Of Non-performing Loan Ratio Of Agricultural Bank Of China

Non-performing loan is one of the key indexes to measure bank credit risk,and also one of the key factors of bank management ability and competitiveness.In recent years,from a macro perspective,the reform of marketization of interest rates has tended to be at a perfect stage.The state has set up a macro-prudential system,strengthened supervision,faced downward pressure on economic growth,supply-side reform,and overcapacity,the adjustment of national location development strategy,and such changes have added more uncertainties to bank loans.From a micro perspective,the degree of homogenization of bank products has deepened;the rise of Internet financial institutions has brought challenges to the traditional commercial banks;the banks themselves have become more difficult to innovate their products.These factors lead commercial banks which rely mainly on traditional deposit and loan business to face great pressure of development.The data show that the total amount of non-performing loans and the ratio of non-performing loans of domestic commercial banks are on the rise,especially,the problem of non-performing loans of Agricultural Bank of China is more prominent.In view of the outstanding problem of high non-performing loans in Agricultural Bank of China.This paper focuses on the empirical analysis of the reasons for the change of non-performing loans in Agricultural Bank of China from the perspective of less people in the past.Taking the variable value of each variable as the analysis object.Taking time series data and the conclusion of the research is obtained by the method of multiple regression.It is found that there is a negative correlation between the change value of non-performing loan rate and GDP,the change value of relative scale of bank assets,the change value of asset return rate,the change value of reserve coverage rate,and the change value of core capital adequacy ratio.There is only a positive correlation with M2 change and interest net income change.In view of the disposition of the increment of non-performing loans,combined with the empirical results,the external should adjust the loan structure in time in accordance with the macroeconomic changes,and increase the rate of return on assets and the rate of reserve coverage.In addition,combining the two angles of non-performing asset securitization and green finance,this paper makes corresponding analysis and suggestions on the disposal of non-performing loans.