Research On The Problems And Countermeasures Of LC Bank's Non-performing Loan Disposal

In recent years,China's economy is shifting from a stage of high-speed growth to a stage of high-quality development.The central economic work conference held at the end of 2018 proposed that China should continue to "adhere to supply-side structural reform as the main line,deepen market-oriented reform and expand high-level opening-up".As an indispensable and important role in the process of national economic development,commercial Banks are facing increasing financial risks in the early stage and in the near future with the implementation of relevant policies and the acceleration of economic restructuring.In the period of rapid economic growth,financial risks are not easy to appear.Once the economy is in the stage of medium-high speed economic growth,the probability of risks in the fields and industries with low risks will increase greatly.In the process of changing from high-speed growth to medium-speed growth,the catch-up economies in east Asia have without exception experienced severe turbulence of the financial system and even financial crisis.Under the background of economic transformation and development,all Banks need to have a clear understanding of the trend of development,strengthen coordination,and jointly solve the problem of non-performing loans,so as to keep the bottom line of no sy'stemic financial risks.Under the above macroeconomic background,the research on the current situation,existing problems and countermeasures and Suggestions of commercial Banks' non-performing loan disposal has strong theoretical and practical significance.This paper studies the disposal of non-performing loans in commercial banks by means of literature analysis,case analysis and field research.The main content consists of six parts.The first part is the introduction.It expounds the background,significance,and describes the current situation,content,and method of the research.The second part is the concept and theory.It expounds the concept and principle of the disposal of non-performing loans and non-performing loans,and the basic theory of the formation and disposal of non-performing loans.The third part is the current situation analysis of LC bank non-performing loans,the bank general situation,non-performing loans and the reasons.The fourth part analyzes the disposal of non-performing loans by LC Bank,expounds the current situation,main means and policy requirements for the disposal of non-performing loans,and analyzes the main problems and causes in the disposal process with the help of three specific cases.The fifth part is the improvement measures of LC Bank's disposal of non-performing loans,and the sixth part is the conclusion and prospect.This paper finds that in the process of disposal of LC banks 'non-performing loans,there are problems such as the difficulty of debt implementation,the long disposal period,the low actual recovery rate,the serious reduction of operating profits,and excessive interference by local governments.The main reasons for the above problems lie in moral hazard and adverse selection,backward management models and legal mechanisms,limited market mechanisms and litigation processes,lack of performance appraisal and incentive mechanisms,local protectionism and lack of innovation,etc..LC banks should strengthen the idea of credit risk management in the process of disposal of non-performing loans in the future,and grasp and control the risk from the source.We will promote the implementation of the mechanism for punishing dishonesty and improve the ability to collect loans according to law.Attention should be paid to the establishment of a professional asset preservation team,and attention should be paid to training the backbone of poor disposal business;Improve the performance appraisal and incentive mechanism,mobilize the enthusiasm and initiative of the work;We will strengthen inter-industry cooperation,give full play to the role of creditors and balance local protectionism.We will speed up the transformation and upgrading and innovate the disposal methods to improve the efficiency of disposal of non-performing loans,increase the actual recovery rate,and achieve sustained and healthy development in the quality of assets of LC banks.