The Formation Mechanism And Controlling Researches On Personal Non-performing Loans

Wenzhou, ZheJiang is regarded as a sensitive and critical zone of Chinese economic barometer. In the year of 2011, one regional economic crisis which was characterized by market broke out, thus, amounts of middle and small-sized enterprises closed down and the bosses ran away. Meanwhile, the fact that more than 40 local banking financial institutions were involved into the maelstrom of this crisis was surprising people. Non-performing loan ratio led to a sudden increase and a great of non-performing assets became a kind of financial pollution within one year, which affected the normal execution of Bank function and threatened the security of entire financial system. In order to handle this crisis, the State Council authorized Wenzhou as the only Financial Reform pilot area among the whole country in 2012, dealing with and preventing the non-performing loans of the financing institution was one of the vital tasks. This thesis analyzes the factors of personal non-performing loans in Wenzhou Subbranch of one bank, thus the disposal way and precautionary measures of personal non-performing loan are listed under the current economic situation in Wenzhou.This paper analyzes and studies the personal non-performing loan domestic and abroad correspondingly in the first part, then 100 personal non-performing loan cases belong to the Wenzhou Subbranch of one bank were picked randomly, the causes, disposal methods and precautionary measures of personal non-performing loan within Wenzhou Subbranch of certain bank were studied systematically by using the methods of macro and micro analysis, theory with practice as well as qualitative and quantitative analysis.The research results show that the main factors of existing huge of personal non-performing loan at present stage is a number of enterprises’ main business failure which caused by the economic downturn. The possible innovation point of this paper lie in the Real Rights Granted by ways of Security is put forward as one Judicial treatment methods on the basis of the disposal experiences of Wenzhou Subbranch of certain bank, and the efficiency of Judicial treatment is greatly improved, whereas most of the personal non-performing loan need to be disposed by Judicial way eventually, thus the efficiency of Judicial disposal is largely decreased by the outburst of personal non-performing loan. What is more, some prevention advices are also proposed on the personal non-performing loan according to the current economic situation in Wenzhou.