Empirical Analysis Of Influencing Factors Of Non-performing Loans Ratio Of Commercial Banks

The stability of the financial system is an important factor in the stability of the economic system.The Chinese government has always attached great importance to the problem of non-performing loans of commercial banks.Since 1999,when the country started the reform of financial institutions,the non-performing loans("NPL")ratio of China's commercial banks has dropped from the highest 44%(Shi Hua Qiang 2005)to 0.9%in 2011(the CBRC website),which has reached a very low level.The state has used special treasury bonds and foreign exchange reserves to inject huge amounts of funds into the state-owned banks,and set up "four big" asset management company to strip the NPL,only to achieve the above results.However,in recent years,there has been an upward trend in NPL ratio,which deserves the attention of regulators and Commercial Bank managers.This paper selects the annual report data of 16 listed commercial banks from 2008 to 2016 as samples,adopt macroeconomic indicators and monetary policy indicators and bank internal management strategy indicators as influence factors,analyzes the influencing factors of NPL ratio by empirical analysis.The results show that the macroeconomic growth rate is negatively related to the NPL ratio,the ability of monetary policy to adjust the NPL ratio is not obvious,the bank's management strategy has a greater impact on the NPL ratio,through effective banking management strategies,commercial banks can reduce individual NPL.The findings are consistent with reality and have implications for bank managers and regulators in the face of rising non-performing loans.According to the research results,this paper puts forward some suggestions on improving bank credit management investment,optimizing credit management process and reducing off balance sheet assets.