Study On The Current Situation And Measures Of Non-performing Assets In NY Bank

In recent years,the scale of non-performing assets of China's commercial banks and the rate of non-performing loans have shown a rapi d upward trend,while the coverage of non-performing loans has declined year by year and approached the minimum level required by regulators.At this stage,how to pr event and resolve the inc rease in the risk of non-performing assets is an im portant task in the m anagement of commercial banks.In addition,as the profit in China's commercial banks mainly comes from the loan business,and the scale of loans and advances is m ore than half of the total as sets,the non-performing assets discussed in this article refers to non-performing loans.This article selected the NY bank as a research object,m ainly taking into account its non-performing assets are m ore serious compared to other banks whose assets are close to NY bank.By analyzing the status of non-performing assets,it is beneficial for NY bank to discover its own shortcomings and improve the risk control level of non-performing assets.At the end of 2013,the non-performing loan ratio of NY bank was only 1.22%,but it has rapidly clim bed to 2.37% at the end of 2016.The increased scale of non-perform ing assets need to m ention more impairment losses on assets.With the sharp increase in the size of the non-performing assets,NY bank needs to impose more provision for impairment of assets on the balance sheet and impairment losses on the income statement,which in turn have a negative impact on the net profit and may ultimately affect the capital adequacy of the NY bank.In the case analysis,this paper analyzes the risk of non-performing assets of NY bank mainly based on the non-perform ing asset risk transmission path.First of all,the paper studies the risk level of non-perform ing assets in NY bank.The analysis of risk profile is from the aspects of the changes of the proportion of loan cl assification,the industry distribution of loan,the regional distribution of loan,the c oncentration of single loan and the case of non-performing loans at the grassroots level.Secondly,the paper analyzes the risk migration of non-performing assets in NY bank,and focu ses on the changing trend of risk m igration rate of concern loans and the exsiting risk of overdue loans.Thirdly,the paper studies the risk resistance level in NY bank to deal w ith the risk of non-perform ing loans from the aspects of the changes of provision ratio,wr ite-off ratio,prof it growth rate and c apital adequacy ratio.Finally,based on the above analysis,the paper quantitatively forecasts the trend of non-performing assets of NY bank over the next two years,and estimates the impact of non-performing assets changes on net profit and capital adequacy ratio.The result shows that the capital of the NY bank may have a gap in the future.In the case of risk control m easures of non-performing asset,the paper draws lessons from the idea of com prehensive risk m anagement of commercial banks,and suggests that NY banks should expand the scale of external financ ing,adjust the credit structure,optim ize the income way,increase the staf fing at the g rassroots level and in troduce large data in monitoring loans in the f uture.Moreover,the ideas of risk m anagement of non-performing asset and some measures put forward on NY banks can also be applied to other commercial banks.