A Research On The Causes And Preventive Measures Of Non-performing Loans In X Bank

Commercial banks can optimize the allocation of social resources.Their sustainable development affects the stability of the economy and plays a key role in economic development and resource allocation.The asset quality and risk management ability of commercial banks can be reflected by non-performing loan indicators.In recent years,the external economic situation has experienced ups and downs,and China’s macroeconomic growth has continued to slow down,and the development of the real economy is facing greater difficulties,which makes the bank non-performing loan amount and proportion rise continuously.The growing scale of non-performing loans makes banks’ credit assets illiquid and erode the profits of bank,and even threaten the survival and development of banks.The research on the causes and preventive measures of non-performing loans in banking industry can provide ideas and suggestions for the sustainable operation of banks.Since 2016,Commercial bank X began to decentralize its approval authority.The decentralizing of branch authority has enabled branch A of bank X to maintain a rapid growth in the scale of its open credit business,while the balance of non-performing loans and non-performing rate have also increased significantly.Among them,the scale of working capital loan business and the balance of non-performing loans accounted for the largest proportion and showed a trend of rapid growth.Therefore,This paper selects the working capital loan business within the approval authority of branch A of bank X as the research object,intends to get the causes of non-performing loans from this kind of business research,finds out the problems existing in the working capital loan business within the approval authority of branch A,and formulates the corresponding preventive measures,So that the scale of branch A of bank X will be improved and the credit quality will be guaranteed at the same time.Based on the existing research literature on non-performing loans of banks,firstly,this paper expounds the relevant research theories at home and abroad.Secondly,through the combination of quantitative and qualitative methods,this paper analyzes the data of the working capital loan business and non-performing loans under the approval authority of branch A of bank X.Thirdly,based on the situation of nonperforming loans of branch A of bank X,this paper summarizes the macro and micro factors of non-performing loans,and selects typical non-performing loan enterprises for case analysis.Finally,using the COSO theoretical framework,this paper puts forward the prevention measures of non-performing loans of branch A from the perspective of internal control,including the establishment of comprehensive evaluation index system of enterprise credit risk,the improvement of review before,during and after the loan,multi angle information monitoring and communication,and other preventive measures.