Export-oriented Economy With Bad Credit

With the reform of financial go to the further, commercial bank of ZhejiangProvince is developing forward continuously and the management and operation isbecoming more and more perfect, the rate of bad loan is relatively on a low level inour country, the problem of non-performing loans has been gradually eased. However,with the development of the economy, structural problem has being more prominent,coupled with the impact of the external environment of economy, the problem ofnon-performing loans has become stern. Previously, the mode of spin non-performingloans on the management of asset management company does not adapt the needs ofthe current social development, to deepen the understanding of non-performing loanseems particularly important. On the characteristic of the export-oriented economy ofZhejiang Province, this paper research from the three main systems: themacroeconomic environment, the enterprises and commercial banks, in order toexplore the comprehensive factors of non-performing loan, and explore the relatedmanagement strategies.Firstly, we make a theoretical analysis of bad credit, and a preliminaryunderstanding of the current situation of bad credit; Then, using the method ofempirical analysis to study the mechanism of bad credit. Mainly macroeconomicvariables (economic levels, inflation rates, dependence on foreign trade, etc.), banksfactors (credit structure, credit cycle, number of employees, etc.) and businessfactors (management ability, innovation ability), are the major of indicator used tomodeling. Finally, according to the empirical results, have a preliminaryunderstanding of the non-performing loan rate in Zhejiang Province, combined withthe actual situation, give the credit management strategy in line with thecharacteristics of Zhejiang Province.The result show that: the level of foreign trade, control the rate of inflation, theadjust of the credit structure and increase the invest of credit, are promote tosignificantly decrease the non-performing loan ratio in a great role. At the same time,increase the long-term loans, increase the input of innovation ability of enterprises,enhance the quality of bank employees, in a certain extent, will help reduce the risk ofbad credit. Therefore, combining the characteristics of local economic development,the non-perform loan management needs from the macro-environment, the bank level,and the micro-enterprises all the three aspects to work together, mutual coordination,so the bad credit can be able to a solve in a fundamental way, and reduce the risk ofpoor credit.