An Empirical Analysis Of The Impact Of Ownership Structure On Non-performing Loans Of Commercial Banks

Under such a special circumstance that China's Macroeconomic-Developing still has a great uncertainty,the Non-Performing Loans and Non-Performing Loans Ratio continue to increase,which can cause a lot of problems to the development of China's Commercial Banks.A new round of Share-Trading Reform has enabled most of the Commercial Banks to basically realized the full circulation of stocks.However,if such a thorough reform will greatly benefit to the Non-Performing Loans of China's Commercial Banks still need further consider.The proportion of improving the Shareholding-Structure is to reduce the NonPerforming Loans,which has an important affect in improving the level of China's Commercial Banks.Therefore,how to effectively allocated the proportion of Shares and the ratio of shareholders in different levels are difficult problems which must be faced to improve the structure of Commercial Banks.In order to reduce the Non-Performing Loans of Commercial Banks,I analyze the measurement of equity structure based on the literature structure.For more,I analyze the basic theories of Macroeconomics,Commercial Banks' Management Theory and Developing Economics to learn the characteristics and its impact on the Non-Performing Loans,through the control of some macroeconomics and microeconomics variables,I deeply analyze the mechanism of Ownership Structure(including Ownership Concentration and Attribution)affecting the Non-Performing Loans.Secondly,this paper based on the data collection,and combined with the historical trajectory of China's Ownership Structure Reform,using the Descriptive Statistics Method to discuss the characteristics of China's Shareholding Structure.On this basis,it also expounded the performance and main causes of China's NonPerforming Loans Ratio.Thirdly,the impact of Ownership Structure on the Non-Performing Loans of China's Commercial Banks were explained from the aspects of Ownership Concentration and Attribution.Finally,it puts forward policy recommendations to improve the Ownership Structure,reduce the Non-Performing Loans and developing the level of China's Commercial Banks.Through the construction of the Non-Performing Loans' panel data model,I have discovered the mechanism of the role of capital attributes on Non-Performing Loan and the impact of Ownership Concentration on Non-Performing Loans.The study has found that the impact of Capital Concentration on Non-Performing Loans is quite significant.The square of the largest shareholder's capital has a significant negative impact on Non-Performing Loans.In another words,if the largest shareholder's capital ratio is high,the bank's Non-Performing Loans are usually lower;.The proportion of the top five shareholders' share capital also has a significant negative effect and the impact is greater.The square of the top ten shareholders' share capital has a significant positive effect on China's Commercial Banks.Therefore,controlling the proportion of top ten shareholders' share capital has a significant impact on reducing banks' Non-Performing Loans.In addition,the proportion of State-Owned Shares and Traded Shares is significantly different from zero at the level of 1%.They all have positive effect on Non-Performing Loans,although the affection isn't large,but they have fully explained the impact on Non-Performing Loans.This paper analyzes the impact of Shareholding Structure of China's commercial banks to improve the efficiency of financial services and provide theoretical and empirical evidence for further reform of Commercial Banks.