A Research On The Causes And Preventive Measures Of Non-performing Loans In Branch B Of Commercial Bank A

Commercial banks play an essential role in economic development,and they are closely related to the stability of national financial industry whether they are healthy,stable and sustainable or not.The Non-performing loan,as one of the most important indicator,has significant effects on the quality of banking operation and the stability of a country's financial system.Since our country macroeconomic growth has declined and real economy has entered into a transition period,both non-performing loans and non-performing loans ratio of commercial banks have been going up,which could affect the sustainable development of China's financial industry and commercial banks.Therefore,studying the causes of non-performing loans of commercial banks can provide new ideas and suggestions for the development of commercial Banks.Branch B of commercial bank A controlled the non-performing loans effectively before 2012;however,the non-performing loans and non-performing loans ratio have increased tremendously from then on.This essay will take branch B of commercial bank A as a research subject by analyzing the practical situation of operating non-performing loans to point out the problems,adjust the strategies of operation and achieve the goal of improving asset management quality and risk prevention ability.This research is based on a large number of relevant literature reviews,which are from domestic and abroad.Firstly,expounding the theory of non-performing loans of commercial banks.Secondly,studying the current situation of non-performing loans of branch B of commercial bank A,through the methods of quantitative,qualitative and case analysis.In order to analyze the causes of formation of non-performing loans from branch B of commercial bank A in macroscopic and microscopic aspects.In this essay,the PEST model is used to analyze the macro factors of NPL formation in four aspects,which are policy environment,economic environment,social environment and technological environment;and the point of view of the itself and borrowers problems from branch B of commercial bank A to analyze the micro factors of NPL formation.Finally,this paper puts forward some corresponding preventive measures such as establishing credit risk comprehensive evaluation index system of enterprises before loan,optimizing the credit structures,improving the loan "tri-check" system and management mechanism of loan officers.