Analysis On The Current Situation And Disposal Mode Of Non-performing Assets Of G Bank J Branch

Commercial banks are an important part of the financial system,so whether banks can develop steadily will directly affect the development of the financial system,and the balance of non-performing loans and non-performing loan rate of commercial banks are one of the important factors affecting their stable development.In recent years,the scale of non-performing assets and the rate of non-performing loans of most commercial banks in China have shown an upward trend,but the coverage rate of non-performing loans,the risk prevention index,has been declining year by year,and is constantly approaching the lowest level required by the CBRC.At present,how to reduce the scale of non-performing loans of commercial banks and dispose of non-performing loans is the basis of affecting the future development of commercial banks.This paper chooses G Bank J Branch as the research object,mainly because of its non-performing loan balance and non-performing loan rate has experienced a leap-forward growth in the past three years.At the end of 2016,the scale of non-performing loans of G Bank J Branch was 210 million yuan,but by the end of 2018,the scale of non-performing loans had reached 2.055 billion yuan.China Banking Regulatory Commission(CBRC)requires banks to have a certain amount of loan reserve to prevent the risks brought by non-performing loans.This means that the net operating profit of banks is decreasing with the increase of non-performing loans.This is one of the reasons why the net profit of G Bank J Branch reaches negative value in 2017 and 2018.In the future,the bank may even have problems of insufficient capital adequacy ratio.By analyzing the current situation of non-performing assets of G Bank J Branch,it is helpful to find out the deficiencies of the branch in the audit of loan business,and put forward suggestions to improve the risk control level of non-performing assets of G Bank J Branch.According to the literature research and field investigation,the causes of bad assets of G Bank J are summarized.The rising balance of bad loans of G Bank J Branch is mainly affected by economic downturn,disordered competition,improper policy and moral hazard.The paper also studies the disposal mode of non-performing loans of G Bank J Branch,including direct recourse,litigation recourse,package sale and non-performing assets securitization,and analyses the shortcomings of thedisposal mode.Finally,based on the analysis of the current disposal mode,this paper puts forward some suggestions on how to prevent the formation of non-performing assets and how to dispose of non-performing assets in G Bank J Branch.