Analysis On The Causes And Countermeasures Of Non-performing Loans Of China Construction Bank,X County Sub-branch

The county banks are the most basic service institution in the financial system.The development of county banks is closely related to people's livelihood,and is related to the social life of the people live in county areas.China Construction Bank X sub-branch is a county branch of CCB,which is one of the key county branches in W city.X sub-branch covers different customers,no matter large ones or small one.However,most of which are small customers in the county environment,which have the relatively higher risk compared to the city branch,and those small customers are prone to come into the non-performing loans.In recent years,the non-performing loans' rate of corporate loans of X sub-branch stayed in a high position.Up to the date of June 30 thin 2016,the number of corporate customers of X sub-branch is 171.The balance of corporate loans is CNY9,413,462,695.05,while the balance of non-performing loans is CNY176,522,030.91,and the NPL rate is 1.875%,which situation is not optimistic.It has already affected the outside image of W branch and X sub-branch seriously,which has hindered the further development of corporate credit business of X sub-branch.What causes a large number of non-performing loans of X sub-branch? This paper explores the status of non-performing loans of X sub-branch positively,analyzes the causes of non-performing loans,and puts forward the corresponding measures and countermeasures.Specifically,this paper starts from the research on the background of the non-performing loans of X sub-branch,reviews the viewpoints and suggestions of domestic and foreign scholars.Then this paper states the relevant concepts of non-performing loans,and focuses on the classification systems of non-performing loans,which lays a solid theoretical foundation for the follow-up study.After that,this paper takes X sub-branch as a case,analyzes the characteristics of the corporate credit business of X sub-branch as well as the status and influence of non-performing loans,and discusses the internal and external causes of bad loansof X sub-branch through the research data and the case analysis by giving the corresponding countermeasures contrapuntally.This paper finds out that the causes of the non-performing loans of X sub-branch mainly include the influence of macro environmental factors such as the downturn of metal market,local industry's characteristics such as the high concentration of single industry,minor enterprises' characteristics such as the weak profitability and poor bargaining position,the internal marketing strategy of X sub-branch,nonstandard credit flow control,the risk management problems such as the lack of comprehensive risk management system.Through analyzing the causes of the non-performing loans of X sub-branch,this paper puts forward the new ideas and countermeasures to curb the growth trend of the non-performing loans to enhance the management level of the non-performing loans and promote the healthy development of the banks.Compared to the previous research,this paper takes the management situation of grass-roots bank as a starting point combining with my own working experience,linking theory with practice,and using the specific cases to analyze the causes of non-performing loans.By researching some aspects like macroscopic,microcosmic,enterprises,and branches,the author hope to bring some inspiration and practical value to the enterprises that can guide enterprises to strengthen the liquidity and capital ratio,and strengthen the financial management of enterprises.At the same time,this paper helps to deepen the reform of county banks in China.First of all,on behalf of the county banks,X sub-branch should do some micro transformation progressively.Secondly,the reform of the county banks should not do the same as others,they must have the global views and the courage to meet the new challenges,only by this way,and the county bank like X sub-branch can show up prominently in the fierce and real competition.This paper has a big shortage on the analysis of the non-performing loans of X sub-branch,so the author hope to provide some academic reference value for the future researchers,promote them to research the bad loans intensively,apply their studies to the actual economic entities eventually so as to promote the economic development of the enterprises to reduce the number of non-performing loans of county banks and help them to manage the non-performing loans effectively.