Study On The Influence Factors Of The Quality Of Commercial Loan

Credit risk is one of the main risks faced by commercial banks.The outbreak of the US subprime mortgage crisis highlights the importance of commercial bank credit risk management.In recent years,the credit scale of domestic commercial banks has continued to expand rapidly.However,due to factors such as the slowdown in macroeconomic growth and the adjustment of supply-side structure,the non-performing loan ratio of domestic commercial banks has been rising.In 2012-2017,the average domestic non-performing loan ratio rose from 0.95% to 1.74%,and the balance of non-performing loans expanded from 492.9 billion yuan to 171 billion yuan.From a micro perspective,loan quality is an important indicator for evaluating commercial bank;from a macro perspective,the overall loan quality is an important basis for evaluating and measuring the operation of financial system.With the rapid growth of bad scale,the problem of non-performing loans has obviously hindered the development of commercial banks,which in turn affected China's financial stability.Using the data of a bank in Dong Guan City from 2013-2017,we investigate the effect of various variables on loan quality.We document that:(1)The short-term solvency of enterprises is positively correlated with the quality of short-term bank loans,the stronger the ability of short-term solvency,the higher the quality of short-term bank loans;(2)The long-term solvency of enterprises is positively correlated with the quality of long-term bank loans,the stronger the long-term solvency of enterprises,the higher the quality of long-term bank loans;(3)The profitability of enterprises is positively correlated with the quality of bank loans,the stronger the profitability of enterprises,the higher the quality of their loans;(4)The operation ability of the enterprise is positively correlated with the quality of the bank loan,the higher the business ability,the better the loan quality;(5)Shortening the loan repayment cycle can effectively promote the relationship between the profitability and operating capacity of enterprises and the quality of the loans.(6)The use of collateral and collateral security methods can effectively promote the relationship between the profitability and operating capacity of enterprises and the quality of loans.This paper holds that: From the bank's point of view,they need to evaluate enterprises in the issuance of loans and the development of loan contracts,which can effectively improve the quality of loans.From the enterprise's point of view,at the same time of operation and expansion,we need to pay close attention to the ability of all aspects of our own,which can avoid the risk of operation and gain more resources and better development.