Research On The Management Of Non-performing Loans In Bank Of China Branch Z

In recent years,the non-performing loan ratio of commercial banks increased from 1% in 2013 to 1.74% at the end of 2017,and the non-performing balance reached to 174 million yuan.The non-performing loan ratio and non-performing loan balance increased year by year.In 2017,the balance and ratio of the special-mentioned loan were all twice as much of the non-performing loan's balance and ratio.So we can speculate that the actual situation of non-performing loans may be far more severe than the published data.The increase of the non-performing loans means that the assets of commercial banks are constantly being eroded.As a pillar of the Chinese economy,commercial banks play a pivotal role in the development of the country.The erosion of bank assets also shows the problem of national economic development.Although China became the world's second largest economy in 2013,created the myth of economic development and entered a new era of comprehensive deepening reform,the effect of the ‘simultaneously deal with the slowdown in economic growth,make difficult structural adjustment,and absorb the effects of previous economic stimulus policies ‘formed in the digestion phase of the previous national stimulus policy gradually appeared.The illogical problems about the industrial institutions and economic growth methods are gradually reflected.The most obvious performance is that China's economy changed its previous high growth status since the beginning of 2015.The GDP growth rate was only 6.9% in 2015 and it even fell to 6.7% in 2016 which is a new low in the decade.In 2017,the government began to rectify banking mess vigorously,strengthen banking supervision and prevent systemic risks of banks.Therefore,how to curb the occurrence of non-performing loans effectively and how to resolve and dispose the non-performing loans complying with regulations legally and effectively have become the focused researched work of commercial banks in recent years.Based on the background and significance of non-performing loan research,the present paper sorts out the research status of non-performing loans of commercial banks at home and abroad to expound the definition of non-performing loans,the impact of non-performing loans and the research theories.Based on the research and data of Bank of China Branch Z,the paper analyzes the basics of the banking system to find out the reasons for the formation of non-performing loans.The analysis is wholly viewed from the overall situation,the development,and the bad situation of Branch Z,analyzed three specific cases of Branch Z and combined with the research and comparison of current disposal and resolution of non-performing loans of commercial banks in China.After synthesizing the analysis of the previous chapters,this paper summarizes the internal and external causes of the formation of non-performing loans.The internal reasons include the impediment of the credit management system and the lack and loose of the authorizing system.The external reasons include macro-economic factors,competition in the industry,imperfections in the legal system,and the intervention from local government.Finally,through analyzing the data,the actual cases and commercial non-performing loan disposal methods and the formation of non-performing loans of Bank of China branch Z,the paper provided a optimization recommendations for the non-performing loan management,including internal bank optimization and external environment optimization to enhance the level of risk prevention and control of bank non-performing loans in the current business environment.Hoping it will help to provide relevant theoretical basis for the prevention,resolution and disposal of non-performing loan management of Bank of China Branch Z or the whole commercial bank group.