Case Study On Disposal Of Non-performing Loans In Bank Of China Branch D

The quality of assets of commercial banks is the decisive factor that affects the quality of their operations.Excessive non-performing loans will hinder the development of commercial banks and at the same time affect the development of social economy.At present,China's economic development has entered a new normal and the economic situation has declined.The amount of non-performing loans of commercial banks affected by this is huge,and the balance of non-performing loans and non-performing loan rates have risen year by year.It has become a difficult problem for commercial banks to control the risk of assets reasonably and efficiently and reduce the increase of non-performing loans.As one of the six major state-owned commercial banks,the Bank of China is the most international and diversified bank in China,and it is also unable to escape the difficulties of continued growth of non-performing loans.How to control the continuous exposure of non-performing loans reasonably and effectively,scientifically dispose of the stock of non-performing loans,and reduce the non-performing loan rate is a difficult problem that every commercial bank urgently needs to solve.Based on the overall situation of non-performing loans of Chinese commercial banks and the local economic environment where Bank of China branch D is located,this paper analyzes the changes of non-performing loan balance and non-performing loan rate of bank D branch of Bank of China in recent years.The reasons for the formation of non-performing loans and the measures for the disposal of non-performing loans,etc.,found that in recent years,the non-performing loan balance and non-performing loan rate of Bank of China D branch have fluctuated greatly,and the distribution of non-performing loans has been concentrated and the causes are more complicated.However,for the disposal measures of non-performing loans,the Bank of China D branch has innovated in the traditional disposal measures,flexibly used various disposal methods,and the non-performing loans have been effectively resolved.Based on this,this paper selects two typical cases of non-performing loan disposal of K Holding Co.,Ltd.'s non-performing loan restructuring and J Group Co.,Ltd.'s non-performing loan securitization.Through combing the entire process of the case,we find out the reasons for the occurrence of non-performing loans and sum up the disposal of non-performing loans.Advanced experience,And get a corresponding revelation.Then,the author puts forward some suggestions on how to prevent non-performing loans,such as optimizing the credit structure,improving the pre-loan investigation,regulating the post-loan management,establishing the evaluation incentive and restraint mechanism and improving the professional quality of employees.