Construction Of The Early Warning System Of The No-performing Loans In China's State-owned Commercial Banks

In recent years, the early warning system of credit risk of foreign commercial banks is getting more and more mature. But our country's early warning system does not improve for a variety of reasons. The research result of domestic scholars in this area is lack. Our country has already granted the national treatment to foreign banks in 2006, which will provide domestic commercial banks and foreign large-scale banks in China for opportunities of cooperation. And at the same time, our banking is going to face enormous challenges of fierce competition from foreign large-scale banks.Some of our state-owned commercial banks has already stated or finished joint-stock reform and listed successfully. But as the important component of commercial bank system, the development of four big state-owned commercial banks has always gotten close attention. In 1999,our government started removing the no-performing loans from the four big commercial banks. Thus, lots of scholars changed to investigate the no-performing loans of commercial banks, including the formation, quantity, manner of disposal and so on.The main body of this thesis is to investigate the early warning system of no-performing loans. After introducing the causes, current situation, influence of the no-performing loans and the warning theories and the current situation of early warning system simply, this article mainly describes establishing early warning system of no-performing loans of our stated-owned commercial banks.The establishing of early warning system will consider several factors. They are the main client,the bank itself, external environment and so on. These factors are very important to the formation of the no-performing loans of commercial banks.The result of investigation of the early warning system in this paper will provide scientific and useful method to discover the risk existing in the loan. And this paper also gives some good suggestions to perfect the system of Banks of business.