Study On The Factors Affecting The Non-performing Loan Ratio Of Commercial Banks

In China,in the financial system,commercial banks support loans for many infrastructure projects.The level of non-performing loans of commercial banks can affect whether financial markets are developing steadily or even trigger a financial crisis.In recent years,the proportion of medium and long-term loans of commercial banks has increased year by year,and the rate of non-performing loans has also increased.Therefore,how to reduce the non-performing loan ratio to maintain social and economic stability is the current test.This paper analyzes in detail the overall status of non-performing loans of commercial banks in China,as well as the trend of non-performing loan ratios of large national banks and joint-stock banks in recent years,and selects three indicators including macroeconomic factors including GDP growth rate,M2 growth rate and CPI.The micro-factors include six indicators including bank asset size,provision coverage ratio,return on net assets,liquidity ratio,capital adequacy ratio,and net interest margin.At the same time,the factors of the loan enterprise are taken into account.And they are respectively a qualitative analysis of the impact of bank non-performing loan ratios.Through the VAR model,this paper analyzes the data of China's commercial banks,from the first quarter of 2009 to the fourth quarter of 2018.The results show that the GDP growth rate and M2 growth rate are negatively correlated with the non-performing loan ratio.Through the panel regression model,this paper analyzes the sample data of large state-owned banks and joint-stock banks from the fourth quarter of 2010 to the third quarter of 2018.It shows that in the sample of large state-owned banks,the capital adequacy ratio,provision coverage ratio,net interest rate difference and non-performing loan ratio are significantly negatively correlated;in the sample of joint-stock banks,the bank asset size is significantly positively correlated with the non-performing loan ratio,provision coverage ratio,and net Return on assets is significantly negatively correlated with non-performing loan ratios.Finally,from the macro and micro perspectives,some suggestions for effectively reducing the non-performing loan ratio of commercial banks are put forward.