An Empirical Analysis Of The Factors Influencing The Non-performing Loan Ratio Of China's Commercial Banks

In recent years,China's commercial Banks have experienced a short golden period,but in the fourth quarter of 2018,the non-performing loan balance of China's commercial Banks reached 2025.40 billion yuan,and the non-performing loan ratio reached 1.83%.Total nonperforming loans are at their highest level in nearly a decade.The continuous deterioration of credit asset quality leads to the slowdown of overall profit growth of the banking industry and the decline of its ability to support social and economic development,which will undoubtedly affect the development of China's economy.Based on the quarterly panel data from 2004 to 2018,this paper established a model to conduct an empirical analysis of various macro and micro factors affecting non-performing loans,and drew the conclusion that simply increasing M2 will not improve the non-performing asset situation of China's commercial Banks,but will lead to the increase of non-performing asset level,which needs to be used in a reasonable combination with GDP.Raising the loan growth rate and reducing the non-performing loan rate in the short term have certain effects,but it cannot solve the problem by treating the symptoms rather than the root cause.Appropriately reducing the deposit and loan ratio of commercial Banks can improve the asset quality and reduce the defective rate to a certain extent.Appropriate control of deposit and loan ratio and loan growth rate is conducive to the control of asset quality.And combined with the actual situation,from the government,enterprises,Banks three aspects of the relevant recommendations.In particular,Banks should speed up the transformation of their operations,serve the real economy,strengthen personnel training,strengthen credit risk management,strictly abide by the bottom line of risks,and strengthen the accountability mechanism.