Analysis On Regional Difference And Influencing Factors Of Non-performing Loan Rate Of Rural Commercial Banks In Hunan Province

Until the end of 2018,all 102 Rural Cooperative Banks in Hunan province had been restructured.They have clearer property relations and more flexible operation mechanism.Also,they enhanced risk resistance and improved asset quality.However,they also have some weak problems,such as heavy historical burden,slow improvement of corporate governance,slow improvement of quality and efficiency.The most prominent problem is non-performing loads(NPL).Each Rural Commercial Bank has spent a lot of manpower and material resources,but the results are not ideal.NPL has become the main bottleneck restricting the high-quality development of Rural Commercial Bank.The non-performing ratio is not only the core index to measure the risk status of Rural Commercial Bank,but also an important index that is highly concerned by the supervision department.The ability of Rural Commercial Bank to resist risks is weak.Since the 19th CPC National Congress,regarding a series of policies implementation concerning "agriculture,rural areas and farmers",such as "poverty alleviation" and "rural revitalization",has led to the rapid development of rural economy and financial competition in rural areas.Rural Commercial Banks are under double pressure.Therefore,the study on the causes of NPL of Rural commercial Bank in Hunan is of great significance.It not only relates to the realization of high-quality sustainable development of the rural commercial bank but also concerns the development of Hunan province’s rural financial market and the implementation of rural vitalization strategy.The paper is based on the theory of economic basic causes,loan reluctance theory,loan competition theory,financial SUNAC theory,basket theory and loan risk management theory,this paper deduces the formation mechanism of the regional difference of NPL rate from six aspects of economic development,the degree of agreement between credit supply and economic development demand,the degree of competition among different trades,the diversified management,the degree of industrial concentration and the degree of supporting agriculture,based on the economic data of 14 prefectures and cities in Hunan Province from 2013 to 2020 and the data from the report forms of agricultural and commercial banks,this paper analyzes the regional differences and influencing factors of the non-performing loan rate,and on the basis of theoretical analysis and current situation investigation,the ratio of loan to GDP,the level of diversified operation,the degree of industry concentration,the factors of competition,the degree of supporting agriculture and the growth rate of GDP are selected as the explanatory variables,and the non-performing loan rate is the explanatory variable,and the panel multi-regression is carried out,measure the impact of various factors on non-performing loan ratio.The results show that the growth rate of GDP,the proportion of loan to GDP,the level of diversified operation,the factors of competition among different industries are negatively related to the non-performing loan rate,and the concentration of industries and the degree of supporting agriculture are positively related to the non-performing loan rate.Accordingly,agricultural and commercial banks should start from adapting to the normal state of economic development,following the law of economic development,seizing high-quality market resources,carrying out fund operation steadily,dispersing credit risks and supporting industries with regional characteristics,improve the ability of credit management,improve the current situation of high non-performing loan rate.