An Empirical Analysis Of Non-performing Loans Of Commercial Banks

Non-performing loan of commercial banks have always been a hot topic of concern to the banking industry. At the end of the last century, in order to solve the four major state-owned banks Bank of China, China Construction Bank, Agricultural Bank of China, ICBC has long stagnant accounts problem, by the government to come forward and invested 400 billion, the establishment of the Xinda,Dongfang, Huarong, Great Wall and so on four asset management companies, are respectively butted with the disposal of non-performing assets of the corresponding bank of the peel. With the Basel Capital Accord and its development in China to promote, in Basel 3 launched on the occasion, the China Banking Regulatory Commission will also timely introduction of four regulatory tools and on capital requirements and leverage, volatility and liquidity put forward the requests, the provisions of these requirements even more severe than Basel Capital Accord, as is strictly controlling bank risk.The academic research on the non-performing loans is generally carried out from two aspects. On the one hand, from the perspective of institutional economics, the paper examines the impact of institutional and government behavior on the rate of non-performing loans of banks. On the other hand, from the perspective of the macro economy and the bank itself, to investigate the impact of various types of macroeconomic indicators and the bank’s own indicators on the bank’s non-performing loan ratio. This is also the basic research ideas of this paper.In the existing literature, scholars at the macro level, the main selection index with GDP growth rate, money supply growth rate, fixed asset investment, retail sales of social consumer goods total etc., at the micro level mainly selected indicators include assets and liabilities rate, the provision coverage ratio, relative size of loans, accounted for the ratio of total liabilities. In this paper, the micro level for the first time in the use of non-interest income accounted for this index to investigate the rate of non-performing loans. Non-interest income accounted for the proportion of bank non-interest income in the bank’s total operating income of the index, which is closely related to the risk of bank. This paper chooses four large state owned commercial banks and five joint-stock banks as sample to analyze the factors affecting the non-performing loan ratio. Finally come to the conclusion that non-interest income accounts for a negative correlation with the non-performing loan ratio of commercial banks.