Study On The Influencing Factors Of Non-performing Loans Of Commercial Banks In China

Commercial bank non-performing loans have always been concerned in the financial operation.Non-performing loans not only directly affect the profitability and stability of commercial banks but also lead to financial crisis.Both the amount of non-performing loans and non-performing loans ratio of commercial banks continued to rise since 2011.As an important sector,the level of non-performing loans of banks directly leads to economic development.Although our government has attached great importance to solve the non-performing loans of commercial banks for a long time,but there is still high ratio of commercial banks' non-performing loan.From 2011 to 2016 in China,Non-performing loan balance and non-performing loan ratio of commercial banks are both on the rise.In the end of 2016,the number of non-performing loans of commercial banks in China has reached 14.939 billion.Obviously,the huge non-performing loans has become a key issue of China's commercial banks need to be resolved.Domestic commercial banks are facing uncertain economic outlook,under the premise of economic downturn,the quality of credit assets have deteriorated.The problem of non-performing loans not only seriously affects the quality of bank assets,but also bring up financial risks.Therefore,it is theoretically significant to study how does the non-performing loan changes and what kind of factors influence it,which value for the sustainable operation of China's commercial banks and healthy development of the national economy.This paper first summarizes the theory of non-performing loans,introduces the definition,classification and cause analysis of non-performing loans,and summarizes the research on the influencing factors of non-performing loans according to the domestic and foreign literature,and summarizes them from the macro level and the bank level respectively.Secondly,the paper analyzes the present situation and the changes of the non-performing loans of commercial banks,divides commercial banks into three types of research,such as large-scale commercial banks,joint-stock commercial banks and rural commercial banks,After analyzes the influencing factors of non-performing loans in domestic and foreign literature,and selects the influencing factors from the aspects of macroeconomic environment and bank management in China.Bank nonperforming loan factors,introduce the concept and put forward the relevance hypothesis.The growth rate of Gross Domestic Product(GDP),money supply growth rate(M2)and coal price index(MTGK);the variables on banks are selected by the bank deposit-loan ratio(LDR),provisioning coverage(PCR),capital adequacy ratio(CAR),net interest rate(NIS),total asset size(LNA)and top ten shareholders(R10).Then,considering the difference between different commercial banks,select the 15 different types of listed commercial banks in the first quarter of 2011 to 2016 in the fourth quarter of the data to establish the panel model,the regression equation of each bank,analysis the impact of macroeconomic variables and bank management to the loan.According to the influencing factors of the empirical results,the panel model is established.After the stationability test and the Hausman test,the non-performing loans of different commercial banks are influenced by the macro factors and the bank management.Finally,the paper puts forward the countermeasures and suggestions for commercial banks to deal with non-performing loans.According to research results,policy recommendations are provided for the disposal of bad loans and effectively control the increase in non-performing loans,which is of great significance in case of China's commercial banks.To prevent non-performing loans increased,reducing the potential risk of banks and promoting the stability of finance.Commercial banks should establish risk management and credit system according to China's macroeconomic growth trends and policy,improving credit risk management.