Causes Of Non-performing Loans And Risk Control In Commercial Banks

In recent years,the non-performing loan ratio and the non-performing loan balance of commercial banks in China have shown a “double-lift” trend.Non-performing loans are an urgent problem that the Chinese banking industry needs to solve.It is a “cancer” in the bank,which erodes the bank’s profits or capital and even leads to bankruptcy.Therefore,how to improve the quality of loans and prevent the increase of the balance of non-performing loans is an urgent problem for commercial banks in China.However,most of the current analysis of non-performing loans of commercial banks is based on macroscopic and external factors,puts more emphasis on theoretical research and lack analysis of real cases.Therefore,based on the current domestic non-performing loan theory and disposal mode,the purpose of this paper is to analyze the causes of non-performing loans,the characteristics of non-performing loans,the measurement of non-performing loans,and the subsequent non-performing loans of commercial banks in China Risk control,etc.Through the case study of XY Bank Chongqing branch,this paper puts forward the policy recommendations for improving the risk control of non-performing loans of commercial banks and the optimization of risk management system,solving the problem of non-performing loans cause and improving the risk management ability of commercial banks in the root.The main contents of this paper are as follows: The first part elaborates the background,practical significance and overall framework of the topic selection.It is proposed that with the rapid development of the economy,and in the face of the “double-up” trend of non-performing loan ratio and non-performing loan balance,how to solve non-performing loans and conduct risk prediction has become an urgent research topic for Chinese banks.The second part of the thesis sorts out the domestic and foreign analysis experience of the causes and disposal of non-performing loans,and analyzes the gaps at home and abroad and proposes unsolved problems.The third part of the thesis sorts out the basic theory of non-performing loans,and analyzes the internal and external factors,formation characteristics and harm which caused by the formation of non-performing loans.The fourth part of r the paper predicts non-performing loans from two angles of qualitative and quantitative analysis.The fifth part of the thesis analyzes the risk control method of non-performing loans from the “three investigations” of loans and the disposal of non-performing loans.The sixth part of the thesis takes XY Bank Chongqing branch as an example.It studies the current situation of non-performing loans of XY Bank Chongqing branch through the non-performing loan performance and data indicators,and proposes non-performing loan measurement analysis and risk control measures.The seventh part of the thesis,combined with the above analysis and case,proposes how to improve the risk control and policy recommendations for non-performing loans of commercial banks.The eighth part of the paper summarizes this paper and puts forward prospects.The innovation and contribution of this paper lies in enriching the risk management of commercial banks,strengthening the predicts and risk control of non-performing loans by means of the micro-level and multi-level analysis of non-performing loans performance indicators,non-performing loans measurement and early warning,based on the related theories of non-performing loans’ causes,measurement and disposal measures,through the real cases of non-performing loans in XY Bank Chongqing branch.At the same time,combined with the current problems and actual development of non-performing loans of domestic commercial banks,this paper studies the credit risk prediction and risk management system of commercial banks from various data indicators,so as to reduce non-performing loans and even avoid the occurrence of non-performing loans at the root.At the same time,the non-performing loans measurement and risk control measures proposed in this paper have strong pertinence.It has important guiding significance for the core competitiveness of our commercial banks in the future.Of course,this paper has certain deficiencies.The case referred to in this paper is XY Bank Chongqing branch.It is a typical joint-stock commercial bank.Due to the limitations of research time and research scope,this paper can only study the non-performing loan data and individual cases of one bank.The analysis of the documents and systems is based on the size of the credit and the business of the bank.It may differ from the details of the other lines.As a result,related problems have not been fully exposed,so there is a discrepancy in the problems that need to be solved.The risk control strategy proposed in this paper is aimed at the existing problems of non-performing loans of commercial banks.However,with the rapid development of China’s economy and the reform of the banking system,non-performing loans will also have new forms of expression.The existing management models cannot solve the new form of non-performing loans.Based on the research of XY Bank Chongqing branch and the actual situation of China’s commercial banks,this paper will propose a solution to the problem of non-performing loans for commercial banks in China.