The Analysis Of The Affecting Factors On Commercial Bank Non-performing Loans

In recent years,under the influence of international economic fluctuations and domestic economic growth downward,many enterprises in Fujian province,in the production capacity and the tide of industrial transformation,face the management difficulties and even bankruptcy.In this case commercial banks non-performing loans grow,and even in balance and proportion "double up" situation.it is not only conducive to the healthy development of the entire province economic,but also greatly affected the level of commercial Banks.The research strategy of this paper is based on the analysis of the main factors that influence the commercial bank non-performing loans of Fujian province,and then puts forward policy Suggestions to solve the problem of the non-performing loans outstanding.This paper expounds the related theory of non-performing loans at home and abroad.And then on the basis of the present status of non-performing loans’summary in Fujian province,this paper points out that the main reason of its non-performing loans increased is the "mutual insurance".At the same time,from the macro perspective,the commercial bank and the enterprises in Fujian province,combining theory from practice,this paper analyses the reasons of non-performing loans.And combining with the characteristics of the root cause of the bad loans of Fujian province,we use the related economic data of Fujian province from 2005 to 2015,and chose five indicators,the consumer price index(CPI),the new value of fixed assets,the new value-added of real estate,exchange rate and Loan balance for empirical analysis.In this paper,we establish error correction model(VEC model),one the basis of classical econometric model for stability analysis,the model is suitable for a co-integration relationship between non-stationary series,can be used to analysis bad loans and the selection of the dynamic relation between the economic variables.The results show that the CPI index and the non-performing loan ratio of Fujian province have significant positive correlation,new value-added real estate development investment,loan balance and non-performing loan ratio of Fujian province is also a positive correlation.New value-added of investment in fixed assets,exchange rate and the non-performing loan ratio that there were a negative correlation.To various factors,of course,within the scope of a reasonable development to maintain growth,will be to play a positive role in reducing the non-performing loan ratio.At the end of this paper,according to the empirical outcomes,as well as various economic variables and the correlation degree between the non-performing loan ratio,based on the relevant experience of prevention and treatment of non-performing loans at home and abroad,we put forward the corresponding policy recommendations to improve the current situation of non-performing loans in Fujian province.On the preventing problems,we mainly put forward some measures to reduce commercial Banks non-performing loan ratio of Fujian province,such as the government’s policy support and credit system construction,improving commercial bank management level,business transformation.On bad loans processing,against three aspects,the government’s support,setting up specialized agencies and the diversity of disposal,we put forward the proposals in this paper,Specially emphasis on the significance of non-performing assets securitization.