Research On Causes Of Non-performing Loans In Joint-stock Commercial Banks

The problem of non-performing loans is an unavoidable risk in the daily operation and management of the big commercial banks.Its existence has always been accompanied by the development of commercial banks in China.The problem has always been highly valued by the Chinese government and the relevant regulatory authorities.The world financial crisis in 2008 has made a certain impact on the economic development of our country.The quality of credit assets of commercial banks also showed a deteriorating trend.To prevent the emergence of bank liquidity crisis,the government and bank supervision departments in China have taken many measures to actively respond,but most of them are aimed at the whole macrofinancial system,such as the entire banking industry or large state-owned commercial banks.As the second major commercial banks of China's banking industry,the joint-stock commercial banks have seen both nonperforming loans balances and non-performing loan ratios rise since 2011,and the risk of the deterioration of assets is increasing.Under the background of the current economic new normality,according to the characteristics and actual operation conditions of joint-stock commercial banks,it is particularly important to adopt targeted and operational non-performing loans disposition approaches.This paper expounds the background and significance of the topic selection,and collates domestic and foreign research status concerning non-performing loans.Based on the theoretical analysis of the influence of the loan concentration ratio of commercial banks on non-performing loans,the panel data model is used to study the causes of the concentration of non-performing loans.First of all,this paper gives a conceptual definition of the degree of non-performing loans and loan concentration,and discusses the theory of the measurement index of the degree of loan concentration and the theory of the impact of the loan concentration of commercial banks on the non-performing loans in detail.Next,it expounds the current situation of non-performing loans and the distribution characteristics of loan concentration degree in China's joint-stock commercial banks.Firstly,it analyzes the current situation of non-performing loans of China's joint-stock commercial banks,including the comparison of the scale of the assets and the non-performing loans with the state-owned large commercial banks and urban commercial banks,the overall asset quality analysis of the joint-stock commercial banks and the scale of their respective non-performing loans of the 12 joint-stock commercial banks.Secondly,it analyzes the distribution characteristics of the loan concentration of the joint-stock commercial banks,including the distribution characteristics of industry loan concentration,the distribution characteristics of regional loan concentration and the distribution characteristics of customer loan concentration.Then,on the basis of the analysis of the current situation of non-performing loans and the distribution characteristics of the loan concentration of the joint-stock commercial banks,this paper adopts the panel data model to make an empirical analysis on the causes of the concentration of the non-performing loans of the eight listed joint-stock commercial banks which can obtain public data.The non-performing loan rate(NPL)of the joint-stock commercial bank is interpreted as the variable of the model,the industry concentration(IHHI),regional concentration(GHHI)and customer concentration(CHD)are the core explanatory variables;the GDP growth rate(GDPR),the equity commercial bank asset scale(TA)and the reserve coverage rate(PCR)as control variables,and make a statistical description about these model variables.The empirical results show that GDPR and GHHI have a significant negative correlation with NPL.PCR,IHHI,CHD and TA have a significant positive correlation with NPL.Finally,based on the empirical analysis of the causes of the concentration of the non-performing loan of the joint-stock commercial banks,the paper puts forward corresponding policy suggestion that proposed from two aspects of macro and micro,expecting could offer a theoretical basis to reduce the generation of non-performing loans.The macro aspects include: establishing and improving the supervision index of the concentration of loan industry and loan area,establishing and perfecting the social credit system and laws and regulations;micro aspects include the implementation of the loan diversification policy,the optimization of the layout of the network to reduce unnecessary expansion,the establishment of risk early warning mechanism,and improve the professional literacy and risk awareness of the credit personnel.