The Influencing Factors Analysis On Non-performing Loans Ratio

Non-performing loans ratio, which is an important indicator to evaluate the development and property safety of banking institutions, has been paid attention in a long term. Currently, the world economic situation is still vague and complex, China's economy is also facing great downward pressure. In the middle of 2015, most of the listed banks' semi-annual reported showed that both their non-performing loans (NPL) and non-performing loans ratio went up. In the meantime, CBRC(China Banks Regulatory Commission) data also showed that banks' non-performing loans increased 109.4 billion yuan, compared with the end of the first quarter of 2015, to 1.0919 trillion by the end of June,2015. As a leader of joint-stock banks, China Merchants Bank is also not easy. Compared with the beginning of 2015, its NPL ratio, which climbed 0.39 percentage points to 1.5%. experienced the biggest rise in the banking industry. How to control non-performing loans better, improve loans quality, reduce NPL ratio? They are with great significance to improve the overall competitiveness and the healthy development of the banking industry.Naturally, there is a big difference between corporate loans and retail loans, but the related academic research is quite rare. This article will study these 2 different NPL. aiming to fill the research gaps and improve the effectiveness of banking supervision and management of commercial banksFirst, this article introduces detailed analyses and elaboration of the relevant background, and builds a solid theoretical foundation of the empirical analysis through the systematic presentation of relevant theories and researches both domestic and abroad.Then, this article demonstrates the concept of NPL, loan classification, as well as the difference between corporate and retail loans to pave the way of the later comparative analysis. Subsequently, this article gives a brief introduction of China Merchants Bank's (CMB) NPL. and selects the Gross Domestic Product (GDP), growth rate of money (M2), the cost-income ratio and non-interest income as the independent variables, and corporate NPL and retail NPL as dependent variable separately, to form several multiple linear modes for the empirical analysis. The results show that the relation between NPL ratio and the 2 factors (bank characteristics, macroeconomic factors) can be quite different due to the different types of loans. In contrast, corporate loans are more sensitive to the negative impact of macro economy.Finally, on the basis of empirical analysis, this article puts forward a number of management advice to NPL.This article which takes CMB as an example, by distinguishing the different types of loans, explores the factors that affect China commercial banks'NPL ratio. This article, to a certain degree of innovation, is with reference value to improve he banks loans management skills and the asset quality.