An Analysis On The Prevention And Management Of Public Non-Performing Loans In The A Stste-Owned Banks

The healthy and stable development of state-owned banks plays a vital role in social stability and the overall economic development of the country.It is not only one of the important pillars of economic development in China,but also an important helper of national macro-control.Since 2012,the economic growth rate has been declining all the way,non-performing loans of banks continue to increase.Facing the frequent occurrence of credit default events and the continuous increase of non-performing loans how to prevent the dismanagement of non-performing loans has become an important issue to state-owned banks.As one of the most important main business in A state-owned bank,public credit business occupies an irreplaceable important position in A state-owned bank due to its traditional business,volume and quantity as well as profits brought by it.Business Department of A state-owned bank.which is responsible for the management of the local and foreign currency business of all corporate customers,has the most direct management responsibility for the credit business,It is also the most direct relative department of well managing public non-performing loans in A state-owned bank's.Therefore,This paper analyzes weaknesses in the prevention and management of non-performing loans in A state-owned banks from the perspective of its corporate banking department by looking into its current rules and regulations related to these loans and combining cases and data analysis.It analyzes the problems existed in A state owned banks'corporate banking department in managing and preventing bad loans by utilizing credit theory,financial vulnerability theory,banking behavior theory and modern management theory.Studies found that the primary cause for A state owned bank's poor management of its corporate loans is its inadequate precaution system in detecting and preventing the outbreak of an early stage financial crisis.Meanwhile,under-equipped information gathering,analyzing and feedback system,blurry duty-responsibility assignments between management and front-line employees due to information asymmetries,are all potential corporate management problems.Also,inadequate employee management,poor bottom-line compliance within account managers,the urgency of reconstruction and the lack of professionalism and expertise within the staff teams,are all problems that need to be addressed.Based on the analysis of the causes of the problems in order to prevent the dismanagement of non-performing loans in A state-owned banks,this paper puts forward that A state-owned banks should speed up financial innovation,establish a sound forward-looking response mechanism and a comprehensive risk supervision system,give full play to big data's role in integrating risk information,remove departmental information barriers,strengthen checks and balances,refinie the accountability investigation system,increasie staff training.In conclusion,this paper has obvious practical significance to strengthen the construction of client manager teams,and establishing expert teams.