Research On Risk Management Of Non-performing Loans Of China's Small And Medium-sized Commercial Banks

In recent years,with the increasing development of our society,China's economy has entered a period of high-quality development from a period of rapid development.Under this background,the country has put forward higher requirements for the quality of financial assets.As the main component of financial assets in China,the high non-performing loan rate in recent five years has affected the development of small and medium sized commercial banks themselves.The research on non-performing loan management of small and medium sized commercial banks in China not only plays a very important role in theory,but also in real life to gradually improve the core competitiveness of small and medium sized commercial banks in China and form a virtuous circle of financial environment.This paper focuses on the non-performing loan management of small and medium sized commercial banks in China from four aspects.First,it briefly introduces the option theory,ice-hockey effect theory and resource allocation theory used in the management of non-performing loans of small and medium sized commercial banks in China.This paper introduces the meaning,classification and characteristics of non-performing loans of small and medium sized commercial banks in China.This paper makes an in-depth analysis of the influencing factors of non-performing loans of small and medium sized commercial banks in China from the four dimensions of macro-environment,enterprises themselves,national policies and bank management,and explores the deep-seated reasons for the high level of non-performing loans of small and medium sized commercial banks in China from multiple dimensions.This paper introduces in detail the internal self-disposal methods widely used by small and medium sized commercial banks in China,such as liquidation,reorganization and cancellation,as well as the innovation of transferring bad assets to non-bank financial institutions in the form of bulk transfer and securitization of non-performing assets.Secondly,from the perspective of combining theory with practice,this paper analyses the current situation of the declining price of non-performing assets,the rising rate of non-performing loans and the increasing difficulty of disposal of non-performing loans in small and medium sized commercial banks in China,and elaborates on the three stages of development and the existing problems of the non-performing loans management experience of small and medium sized commercial banks in China.Thirdly,based on the actual investigation and empirical data collection of non-performing loans of DH Bank,this paper selected the data of non-performing loans of Chengdu Bank of DH Bank in 2017 as a sample,and summarized the four types of non-performing loans of the bank: real estate credit,overcapacity industry,base liquor pledge and guarantee company.The causes,management and disposal of these four types of non-performing loans are discussed in depth.Fourthly,according to the current situation of non-performing loans of small and medium sized commercial banks and non-performing loans of DH Bank Chengdu Branch,countermeasures and suggestions are put forward.Based on the study of the current situation of non-performing assets management in China's commercial banks,this paper puts forward some suggestions on the management of non-performing loans in China's commercial banks: from the perspective of controlling the increase of non-performing loans,the first is to implement the capital supervision strategy against the economic cycle.Second,we should constantly strengthen risk awareness and problems,and establish and improve the credit system.Thirdly,risk pre-management departments should be set up to strangle risk customers in the cradle.From the point of view of accelerating the bad digestion stock,the first is to link the bad production with the performance appraisal of credit personnel.Secondly,the stock of non-performing loans will be classified and disposed of to improve the fine management.Third,keep track of bad debtors and keep abreast of debtors' latest developments.Through the study of the current situation of non-performing assets of DH Bank,the following four suggestions are put forward: First,to guard against potential risks and strictly control group customer credit exposure.Second,we should adjust the credit structure and optimize the allocation of credit resources.Thirdly,from the traditional scale-oriented management mode to the quality-oriented management mode,we should strive to improve the quality of credit.Fourthly,the paper puts forward some pertinent solutions to the urgent problems in the management of non-performing loans of DH Bank Chengdu Branch.This paper focuses on the management of non-performing loans of small and medium sized commercial banks in China,and combines with the example of non-performing loans of Chengdu Branch of DH Bank,discusses the real problems of non-performing loans management of DH Bank.From two aspects of preventing and controlling the increase of non-performing loans and accelerating the processing of bad stock,this paper puts forward some suggestions on the management of non-performing loans of DH banks and small and medium sized commercial banks in China,which enriches the theoretical research of non-performing assets management of small and medium sized commercial banks in China.At the same time,it plays a guiding role in the management of non-performing loans of DH commercial banks,and also provides reference for the management of non-performing assets of other commercial banks.