Study Of Dissolving The NPLs Risk Of Taiyuan City Commercial Bank

City commercial bank plays an important role in the finance system of China. Because it is developed from city credit association, has small scale and its asset suffers low quality, the development of city commercial bank is somewhat not rational. Consequently, city commercial bank has potential financial risk that probably has negative effects on the development and stability of local economic and financial business. This thesis analyzes the Non-Performing Loans (NPLs) of Taiyuan City Commercial Bank and presents specific methods to avoid and dissolve financial risk encountered by the bank.First, based on the history, human resource, organization scheme, business progress and financial situation of Taiyuan City Commercial Bank, this thesis studies its current status in detail. Moreover, this thesis shows the seriousness of the NPLs risk of Taiyuan City Commercial Bank and the urgency of dissolving it according to the characters of NPLs in Taiyuan City Commercial Bank and situation of the NPLs of city commercial banks in China.Second, this thesis traces the source of NPLs of the Taiyuan City Commercial Bank by studying its history background , external reasons including finance environment, debt enterprise, local government and its operation.Then, based on the predominate factors, three kinds of methods are introduced to handle NPLs and improve capital adequacy ratio. The feasible one is selected from the above three methods by evaluating the difficulty of operation, cost and profit. This thesis also proposes advice associated with organization construction, handle of NPLs and support regulations of local government.Finally, to dissolve the risk of NPLs of Taiyuan City Commercial Bank efficiently and apply the methods proposed in the thesis, specific advice is presented for the construction of bank, the regulations of supervision and support from local government , and the guidance of national policy.