Analysis And Risk Control Measures Of Bad Loans In Commercial Banks

As is known to all that China has made remarkable achievements in economic construction since the reform and open policy.Through the reform of economic system,China has succeeded in breaking the traditional planned economic system,and preliminarily established the socialist market economy system.China has achieved sustained and high economic growth in economic in the last 30 years,which is a miracle in China's economic history.With the rapid economic development,the financial industry in China enjoys the benefit of the economic revolution of China.Based on the datareleased by the China Banking Regulatory Commission,as of the end of the fourthquarter in 2015,the total domestic and foreign currency of the banking institutions in Chinese banking industry is 199.3 trillion yuan,and the net profit in the same year is 1.5926 trillion yuan.However,the economy growth has fallen continuously from 2010-2015,since the financial crisis in 2008.The specific performances are as following: the widespread of the bank loans,frequent credit risks,and spiralingnon-performing loans ratio in commercial banks.At present,the credit risk has become thelargest potentialrisk to all commercial banks.Thus,the study on the causes of non-performing loans and regulatory measures has a profound impact on the solutions to non-performing loans of thecommercial banks of China.I have been working at the bank's grassroots level,and engaged in reviewing and approving credit businesses.As a result,I have come acrosslots ofpractical cases in our work and gathered experience of credit risk resistance.Starting with theanalysis on current international and domestic macroeconomic situation,thetendency and causes of thenonperformanceloans of commercial banks,as well as the industrial distributionin the present economic situation are analyzed in this thesis.At last,in view of this situation,I put forward that the "three examinations" system is an important means to prevent nonperformanceloans.Based on practical work experience,the effective control methods and the main problems which should be paid attention to in the "three examinations" system are demonstrated by "Experiential Research Method".And according to the specific circumstance at present,directivesuggestions are put forward to transfer the nonperformanceloans.Engaged in practical work,I have more experience on specific operations.I hope this can provide some tips for the colleagues in financial circles who are facing the confusions.