The Disposal And Case Analysis Of Commercial Banks’ Retail Non-performing Loans In China

According to the statistics of the China Banking and Insurance Regulatory Commission,the total balance of non-performing loans of China’s commercial Banks in 2018 reached 2025.4 billion yuan,increased 18.74 percent from 2017,and the non-performing loan ratio reached 1.83 percent,increased 5.17 percent from 2017.China’s non-performing loan ratio is much higher than of developed countries in Europe and North America such as the United States(1.1% in 2017)and the United Kingdom(0.7% in 2017),according to the report by the world bank.Similarly,in the sub-sector of retail non-performing assets,the total balance of retail non-performing loans of China’s commercial Banks increased rapidly from 63.96 billion yuan in 2013 to 191.42 billion yuan in 2017,with an average growth rate of up to 50%.Rising non-performing bank assets will reduce the bank’s profitability,influence the bank’s capital adequacy,aggregate the asymmetry of bank assets business and liabilities business,and result in a decline of bank credit rating.Retail non-performing assets with the characteristic of low single amount,long time and high cost of disposal,is always the problem of commercial banks’ non-performing assets disposal practices.This thesis has obvious practical significance.There are many researches on the causes and disposal of banks’ non-performing assets,most of which are based on the perspectives of macro economy and micro enterprises,and more applicable to the non-performing assets of corporate credit.There is a slight lack of researches on the retail non-performing assets with individuals as the main borrowers.Based on the financial fragility and information asymmetry as theoretical basis,this thesis summarized the retail non-performing assets forming factors including economic environment,policy guidance,the borrower subject factors,and the Banks themselves,etc.,and together with the present situation of commercial bank’s nonperforming assets disposal at the same time,pointed out the problems of the way to disposal is traditional,the disposal effect is not ideal,the disposal environment can be improved and the disposing information is asymmetry during disposing the banks’ s nonperforming assets.This paper summarized the experience of the disposal of nonperforming assets in the United States,Europe,South Korea,Japan and other countries,and puts forward suggestions based on the analysis of the securities of non-performing assets of China’s "jianxin phase ii 2016" retail assets.The main conclusions of this paper are as follows :(1)through the analysis of the causes of retail non-performing assets,it is found that the formation of retail assets in commercial Banks is easily affected by objective factors such as economic cycle and policy guidance,as well as subjective factors such as asymmetric information of borrowers and lack of compliance management of bank internal control.(2)summarized the experience of the disposal of non-performing assets in the US,Europe,South Korea,Japan and other countries,it is found that the government all plays an important role in identifying and preventing the formation of non-performing assets and leading the top-down disposal of non-performing assets,and the banks themselves quickly dispose of non-performing assets through a combination of various modes.(3)commercial Banks can adopt the scheme of "standardized collection of retail non-performing assets" to reduce the incidence of non-performing assets,or adopt the modes of "good bank + bad bank","Internet + auction" and "securitization of retail non-performing assets" to conduct centralized and rapid disposal.(4)through the analysis of the securitization products of non-performing assets of "jianxin phase ii 2016" in China,it is found that the retail nonperforming assets have the characteristics of high dispersion degree and strong recyclability,which are suitable for being the basic assets of the securitization products.