Analysis Of The Causes Of Non-performing Loans In The LY Branch Of The Agricultural Bank Of China And Countermeasures

Non-performing loans refers to put the loan to the bank did not exist of repaying loan defaults,the competitive ability of commercial Banks as well as one of the measures of earnings,non-performing loans for commercial bank's influence is very big,it can make the commercial Banks operating risk,non-performing loans too much and sometimes even lead to the occurrence of financial crisis,so the operation of commercial Banks in the daily must raise awareness of non-performing loans.The non-performing loan ratio of agricultural bank of China is always the highest among the four major commercial Banks in China,which has a great impact on the operation of agricultural bank of China and weakens the overall competitiveness of agricultural bank of China.Therefore,it is necessary and urgent to analyze the causes of agricultural bank of China's non-performing loans.Based on this,the author combined with years of experience in agricultural bank of China,took LY branch as the research object,and analyzed the causes of non-performing loans in LY branch of agricultural bank of China.Firstly,it gives a theoretical overview of the non-performing loans of commercial Banks.On the basis of absorbing and sorting out the knowledge related to the previous literature,this paper summarizes the concept and classification of non-performing loans of commercial Banks,and sorts out and summarizes the theories related to the causes of non-performing loans of commercial Banks,including bank behavior theory,credit theory and the inherent vulnerability theory of commercial Banks.Secondly,the current situation of non-performing loans in LY branch of agricultural bank of China is analyzed.It analyzes the current situation of bad loans of LY branch,including the situation of bad loans of LY branch.Again,on LY branch of agricultural bank of China non-performing loans causes analysis of qualitative and quantitative analysis,the qualitative aspect,through the various branches of LY branch of the causes and disposal of non-performing loans in the survey,from two aspects of external and internal summary to analyze the causes of non-performing loans of LY branch,on this basis,the application of quantitative methods of the influence factors of the non-performing loan ratio of LY branch empirical analysis.Through the qualitative and quantitative analysis of the causes of LY branch's non-performing loans,the author believes that LY branch's non-performing loans should be prevented and controlled from the external and internal aspects of the bank.External measures include creating a stable financial operation environment,combining macro-control with bank supervision,strengthening financial supervision,improving legal environment and improving financial support for non-performing borrowers.The internal measures of the bank include strengthening the construction of risk management system,decentralizing business layout,innovating credit business products,enhancing risk prevention awareness and improving the professional level of employees.