Analysis Of Bad Loans In China's Commercial Banks And Suggestions For Countermeasures

Commercial banks are an indispensable part of China's financial system.The continuous and stable operation of banks is the guarantee and foundation for the healthy development of China's financial system.At the same time,the scale of non-performing loans of commercial banks will not only have an impact on the operating conditions of banks,but from a macro point of view,it may even become a trigger for financial crisis.At present,China's economy has entered a new normal and is in the period of structural adjustment pains and economic growth shift.Under the background of such an era,it is of great significance for the study of non-performing loans of commercial banks.First of all,through the collection and sorting of data from various banks,this paper first describes the status and causes of non-performing loans in commercial banks in China.At present,the balance of non-performing loans and non-performing loans of commercial banks in China still shows an upward trend,but the growth rate has slowed down significantly.Large commercial banks and rural commercial banks are the focus of non-performing loan balances and non-performing loan ratios,respectively.From the view of provision coverage ratio,the overall provision coverage ratio of China's commercial banks shows a downward trend,among which large commercial banks have a declining trend,and city commercial banks have a relatively high provision coverage.In the loan-releasing industry,large-scale commercial banks showed higher profitability and convergence,while city commercial banks showed more personalization in their choice of industry.Then,through empirical analysis,this paper proves the impact of macroeconomics on commercial banks' non-performing loans.Through empirical research,we can discover that macroeconomic effects on commercial banks' non-performing loans cannot be ignored.With the previous research results,this paper speculates that the future The absolute amount of non-performing loans for commercial banks in China will increase,but the growth rate will decline,the absolute amount of loan loss reserves will increase,the provision coverage ratio will decline,the scope of bank non-performing loan risks will widen,and commercial banks will provide real estate loans.The amount will fall.Finally,combining the results of previous studies,this paper proposes the prevention and control suggestions for commercial banks' non-performing loans from three perspectives.In general,commercial banks shouldimprove their own level of prevention and control,and the supervisory authorities should strengthen institutional development.The government should weaken its own level of intervention in commercial banks.