Factors Affecting China's Commercial Banks Non-performing Loan Ratio

Commercial Bank NPL ratio size is a key indicator of the quality of credit assets, survival and development of the bank has a significant impact on the healthy and stable development of a country's financial markets also play a decisive role. Chinese GDP growth rate began to fall from 2012 onwards, under the new normal economy, China's economic growth tends to be more stable, more attention to the quality and coordination of development. Meanwhile, non-performing loan ratio of commercial banks showed an upward trend and the increase continued to increase. Therefore, the analysis of influencing factors of commercial banks NPL ratio has great practical significance in the new economic development trend.This paper describes the main theories of non-performing loans of commercial banks, followed by analysis of the new economy of normal commercial bank NPL status and characteristics. Were again bad loans of commercial banks genesis theory. After that, China's commercial banks non-performing loan ratio as the dependent variable, select the sample data for the principal component analysis of first quarter of 2010 to the third quarter of 2015, quarterly data for all of our commercial banks, using the extracted empirical analysis in order to find adverse factors Affecting the commercial bank lending rates. And came to China's commercial banks non-performing loan ratio at the macroeconomic level and GDP growth, inflation, interest rates, the Shanghai index is negatively correlated; and under direct quotation exchange rate was a positive correlation between high levels of foreign exchange rates, devaluation NPL ratio increased; in the banking business and the level of provision coverage, the net interest margin, capital adequacy ratio was negatively correlated; and City residential average price were negatively correlated.Finally, select the Chongqing Rural Commercial Bank Case case studies, based on relevant indicators in recent years, and combined with this bank report on a detailed analysis of this non-performing loan ratio of bank status and causes and propose targeted to reduce NPLs recommendations and Countermeasures.