Research On Distributing Non-performing Loans In L Bank

Owning to all kinds of inner factors and the influence of macro economy as well,the non-performing loan ratio of Bank of L Co.,Ltd.(shorted as L bank in the following parts),which is a municipal commercial bank,has been greatly improved.As a result,the total return of L bank has been greatly reduced.Just like the old shoes do not suit,past experiences could not help solve the emerging problems in the new normal of our economy.Major problems lie in ways of recognizing,classifying and distributing non-performing loans.Besides,whether we could take examples from other banks decides how well we could explore new ways of distributing non-performing loans.In view of this,taking L bank as an example,this paper will discuss ways of distributing non-performing loans in L bank and solve the previous problems.In this process,the paper will analyze the present situation in L bank,learn from other banks and bring up ways of distributing non-performing loans.Firstly,through the analysis of L bank,the paper will discuss the development and sector allocation of non-performing loans in previous years.Then we will discuss the ways of distributing non-performing loans,namely,refinancing,write-off,cash payback,lawsuit and so on.Thirdly,we will discuss the defects of those methods and bring forward solutions to the problems.On the one hand,the disadvantages and relating promoting methods are of practical significance to improve the disposal of non-performing loans in L bank.On the other hand,it is of theoretical significance and could also be applied to other municipal banks.