Influencing Factors Of Commercial Bank Non-performing Loan Ratios

With the development of banking reforms, the problem of non-performing loans is getting better. However, according to the latest data from the reports, the non-performing loans and non-performing loans ratio show the "double" situation, which makes the problem of non-performing loans attract to people’s attention again. As we known, non-performing loan is a leading indicator for the financial crisis, and non-performing loans is a threat to the sustained and stable development of China’s economy. Therefore, it has significance to analysis the influencing factors of non-performing loans ratio.Firstly, comparing with foreign and domestic studies, few papers research through micro-level analysis on the impact of non-performing loans ratio. Thus, this paper based on the microscopic point, to explore bank agency, internal incentives, operating management problems on non-performing loan ratio.Furthermore, this research using data of listed commercial banks, with the period from the first quarter of 2009 to the second quarter of 2014 as the sample, select CI, LDR, PCR, CAR and SIZE as operating management indicators, GDP, M2 as macro-economic indicators. Based on macro and micro perspective to explore the influencing factors of non-performing loan ratio, The conclusions have been shown as follows:(1)GDP and PCR factor negatively related with non-performing loans ratio.(2) M2. SIZE and CAR factor shows a positive relationship.(3) CI and LDR factor on non-performing loan ratio is not significant.Finally, according to this empirical study, some measures and suggestions are put forward to prevent and resolve the non-performing loans problems.