Research On Formation And Management Strategies Of Non-performing Loans In A Bank H Branch

The non-performing loan ratio of banks is an important measurement of the business conditions of commercial banks.However,under the influence of the economic downturn in recent years,the income of domestic residents has decreased,which in turn has limited consumption to a certain extent.This decrease has been reflected in the growth rate of urban and rural consumption in China.Because of the sluggish economy in the industry and the reduction in revenues realized by enterprises,banks that provide financing support for these industries will face difficulties in recovering principal and interest from loans.With the deterioration of the asset quality of China's commercial banks,the scale of non-performing loans and the ratio of non-performing loans have shown a growth trend.The bank's non-performing loans have had a number of adverse effects and have reduced the bank's profitability.Banks need to use their own funds to make up for the shortfall caused by non-performing loans.In addition,due to more non-performing loans,banks can not invest more funds in research and development,resulting in the loss of the core competitiveness of banks and even jeopardizing the stability of China's existing financial system and the sound development of the country's economy.Therefore,it is of great significance to study bank's non-performing loans.However,as for the issue of non-performing loans,academic scholars mainly focus on the causes of non-performing loans and the preservation measures of non-performing loans.The study on the risk prevention and control measures for bank's non-performing loans is not thorough.What's more,scholars' research mostly focuses on the theoretical analysis and summary,therefore few scholars are able to combine theoretical and practical cases.The relevant theoretical basis cannot be directly applied to solving practical problems.As the non-performing loans have been affected by the economy and local policies,and because of the defects in bank loan management systems and low effectiveness of risk management and controlling,the negative problems caused by non-performing loans are still severe.This paper compares the characteristics of non-performing loans between Bank A and its peers.The non-performing loan ratio,provision coverage ratio and internal structure of non-performing loans of Bank A are better than those of commercial banks.A bank with excellent asset quality is reflected in its retail-oriented development direction,which spreads risks to some extent.On the one hand,Bank A which has a short time of establishment lacks experience,so the potential risk of loan has not yet been fully exposed.On the other hand,the operating characteristics of Bank A are conducive to the dispersion of risks and have implications for other banks.According to the data of branch banks of Bank A in H Province's non-performing loans,through theoretical analysis of the influencing factors of non-performing loans,an exploration of non-performing loan management strategies was conducted,and the branches of Bank A in H Province were targeted for studying effective non-performing loan management.This paper analyzes the non-performing loan data of Bank A branches in H Province by means of classification methods such as guarantee method,business type,regional division,industry division,etc.,and points out the form and influencing factors of non-performing loans.The factors of bank's non-performing loans are macroeconomic,There are four aspects of government intervention,excessive competition,and credit mechanisms.In response to the influencing factors of bank's non-performing loans,corresponding countermeasures have been proposed:establishing a development strategy that meets the new normal;strengthening the communication between banks and the government;strengthening the comprehensive risk management continuing to strengthen asset quality control;and improving the quality of loan officer managers.