Reasons And Solutions Of Non-Performing Loans In Commercial Banks Of China

China’s financial system is very fragile, while China’s banking system is the most vulnerable and dangerous place in the Chinese financial system. The reason is China’s banking industry especially the Commercial Banks of China were branded deeply in the Chinese style mark-non-performing loan with China’s gradual reform by socialist economic system with Chinese characteristics. Non-performing loans seriously affected China’s entire financial system and even the healthy and orderly development of China’s economy so is cry for solving the problem in Chinese banking industry at present. Although the large amount of non-performing loans has caught the attention of the government and other social departments, which taken some related measures to drop it, non-performing loans in Commercial Banks of China are still very huge now. Therefore, research on the causes and measures of non-performing loans in the Commercial Banks of China is significant not only in theory but also in reality. Appropriately solute non-performing loan problem in Commercial Banks of China is of great significance both for promoting further reform China’s financial system and enhancing the competitiveness of the Commercial Banks of China.This paper firstly introduces the significance and background of research and gives an overview of the concepts and classifications of Banks and commercial Banks and briefly introduces the classification of the Commercial Banks of China that tell us the historical origin. From three aspects to discuss the research significance by improving the efficiency of Banks, promoting the optimized allocation of resources, and better responding to the economic cycle fluctuation and enhancing the competitiveness of the commercial banks of ChinaThen, this paper estimate of the non-performing loans in commercial Banks of China based on the study of some financial dates and also introduces the definition, classification standards and the status quo of non-performing loans. The main purpose of this part is drawing off the problems of non-performing loans in commercial Banks of China should not be ignored. the government and its relevant departments, the relevant financial institutions, should strengthen the disposal of non-performing loans in commercial Banks of ChinaThis paper discusses the reasons of non-performing loans and divided the commercial Banks of China into state-owned commercial Banks and the joint-stock commercial Banks. in short, the outside of the historical reasons that is progressive reform and economic system with Chinese characteristics and the internal reason that is its operation and management problems lead to such a huge amount of non-performing loan.Since a variety of reasons led to the current non-performing loan problems in commercial Banks of China, we must face the bad influence for non-performing loan problem. The rest of this paper introduces the effects of non-performing loan so raises the disposal of non-performing loans in commercial Banks of China.Through theoretical research and empirical analysis, this paper put forward the rationalization proposal for non-performing loans in commercial Banks of China.