An Empirical Research On The Quality Of The Credit Assets Of China’s16Listed Banks

Along with the development trend of globalization of financial market and theworld financial market intensifies fluctuation, commercial bank risk management hasbeen concerned by the financial community. Especially after China’s entry into theWTO, the gradual opening of the financial industry and the complete of thestate-owned commercial Banks’ share-holding system, our country banking industryinto the rapid development phase. A lot of bank risk gradually apparent, bankmanagers to the risk management needs more and more urgent.Bank assets are good or bad, that directly affect the survival and development ofthe bank itself, and the size, structure and quality of the credit asset play a crucial roleto the long-term sustainability of banks, so it is must to strengthen the management ofthe bank credit assets’ quality. In the risk management of the credit assets, the qualityof the credit assets evaluation is the important core in the risk management process, inrelation to the success or failure of the risk management. Bad loans banking as animportant index of the credit risk plays an important role in risk prevention and earlywarning system.In this paper, on the basis of analyzing the current situation of commercial bankcredit assets, through the DEA methods select six indicators which related to the bankcredit assets quality, establish a input-output index model, evaluation out2005to2010the country’s16listed banks’ quality of loan assets, and make the transverse andlongitudinal comparison analysis; at the same time，we through the multiple linearregression analysis, evaluation out how the six index in the model effect the quality ofloan assets, get the key influence factor of credit assets’ quality-bad loans, and finallyput forward the suggestions and prospect to improve the quality of the bank creditassets.This paper draws three conclusions: first, our country’s16listed bank creditassets quality is promoted step by step; second, the bank credit assets’ quality isinfluenced by the external economic environment, the banks’ credit technicalefficiency and the difference in the size of credit efficiency; third, bad loans hassignificant influence to the quality of loan assets.