Research On Factors Affecting The NPL Ratio Of Commercial Bank

America’s subprime credit crisis triggered a global financial tsunami in 2007. Real estate bubble led to the continued growth of the non-performing loans of commercial Banks and eventually caused the financial tsunami. And as early as in 1997, it’s also due to the bad assets of commercial Banks rapidly expand that eventually led to the southeast Asian financial crisis. Therefore, the study of commercial Banks non-performing loan ratio has very important theoretical and practical significance.Foreign scholars for the study of commercial Banks non-performing loan ratio starts relatively early, research method and theory also is more, in the early 1980 s, they had begun to use mathematical models to the study of the non-performing loans of commercial Banks, which use the most model is panel data model, and according to the research results they put forward some Suggestions for the government and bank. The factors they considered included macro and microeconomic aspects of specific factors on the part of the Banks. Domestic scholars on the research of the commercial Banks non-performing loan ratio started relatively late, and mainly focused on qualitative research, quantitative analysis of the very few. In this paper, it is in this context, reference the foreign research methods, mathematical model and empirical data to quantitative analysis to our country commercial bank non-performing loans.Based on the 2010-2013, GDP growth rate, inflation rate, and industrial and commercial bank, agricultural bank of ten big commercial Banks such as bank in 2010-2013 scale, capital adequacy, bad loan provision coverage, LDR, net interest margin based on the related data, we built a set of panel data. This paper uses panel data model to analyze the factors that influence the commercial Banks non-performing loan ratio, on this basis, using the principal component analysis to these factors which are analyzed, and analysis the degree of the Banks affected by the principal component from the principal component value coordinate chart. We found the impact on China’s commercial Banks non-performing loan ratio of these factors we examined is different from the European and American developed countries, this is mainly due to the special national conditions of our country. At the end of this paper, based on the research results, we put forward some constructive suggestions for the commercial Banks and banking regulators.