Comparative Research Of Handling Non-Performing Loans In Wuzhong

The non-performing loans(NPL)and the NPL ration of commercial banks in Wuzhong district increase in recent years,both indexes are sustainable growth.But the NPL disposal rate fluctuates largely and always stays in the low position which needs to be improved urgently.This paper mainly uses the literature reading method,comparative analysis method and case study method.At first,it introduces the six ways to handle non-performing loans.Then,it analyzes the cause of non-performing loans to prevent the newly-increased NPL.Meanwhile,it analyzes the change of NPL and the way to handle NPL,together with typical case of NPL disposal,to summarize the character of handling NPL in Wuzhong district.Also,it comes out the problem of handling NPL in Wuzhong district which are commercial banks can not get adequate authority of handling NPL,the way to handle NPL is simple,the progress of handling NPL is slow,difficult to implement collateral,the cost of loan recovery is high and the creditor-debtor relationship of borrow is complex.At last,we recommend to adjust the way to handle NPL,improve the construction of commercial banks and strengthen communication with the relevant departments of handling NPL to improve the effect of handling NPL in Wuzhong district.