Research On The Causes Of NPL Of Z Rural Commercial Bank And Its Preventive Disposal Strategy

In recent years,the non-performing loans in China's banking sector are accelerating under the influence of multiple factors such as the slowdown of domestic macroeconomic growth and the financial supply-side structural reform.In May 2019,Baoshang Bank was taken over by The People's Bank of China and The Banking Insurance Regulatory Commission due to serious credit risks."serious credit risk" also refers to the huge amount of non-performing loans and the non-performing loan ratio far beyond the regulatory red line.By the end of December 2019,the non-performing loan balance in China's banking sector was 2.41 trillion yuan,with a non-performing loan ratio of 1.86 percent.Among them,the non-performing loan balance of rural commercial Banks is 615.5 billion yuan,accounting for 25.54%of the non-performing loan balance in the banking sector,and the non-performing loan ratio is up to 3.9%,far higher than the average level of other types of banking financial institutions.Rural commercial Banks are from the restructuring of rural credit cooperatives,rooted in the grassroots,wide range of points,are the main forceof rural finance development,service local economy,Support privately operated micro businesses.As China's rural financial market is relatively backward,the business variety of rural commercial Banks is single,the modern management concept is absent,the operation development is simple and extensive,and the assets are mainly concentrated in credit assets.At present,the accumulation of non-performing loans in rural commercial Banks and the prominent problem of credit asset quality have become the bottleneck of development and reform in the new era.In the critical period of preventing and defusing financial risks,it is particularly important to prevent and deal with the non-performing loans of rural commercial Banks to serve the local economy,the development of agriculture,rural areas and farmers,and to win the battle to build a well-off society in an all-round way.This paper discusses the problem of NPL in rural commercial bank and carries out relevant research from five parts.Firstly,the general situation of non-performing loans in China's banking industry is sorted out.In this context,the research significance,methods and technical route of non-performing loans in rural commercial Banks are put forward.The research status of related problems at home and abroad was reviewed.Then the definition and classification methods of NPL are briefly introduced,and the research theories on NPL generation and control,such as credit theory,financial fragility theory,loan risk management and so on,are introduced.The third part selects the research object of Zrural commercial behavior,analyzed the status quo of NPL of Z rural commercial bank through field survey,questionnaire survey and data analysis,and summarized the risk characteristics from the aspects of change trend,five-level classification,distribution,resolution and disposal.In the fourth part,this paper deeply analyzes the internal and external factors of NPL of Z rural commercial bank By means of case analysis.The fifth part puts forward the countermeasures and Suggestions to prevent and deal with NPL such as giving play to the superposition effect of policies,strengthening the credit risk prediction,guiding customers to fulfill their debts in good faith,innovating the way to deal with bad debts,and taking precise measures to make more efforts.In this paper,the NPL problem of Z rural commercial bank is studied,and creative solutions are proposed for the current NPL risk management and disposal of NPL.This will further promote the compliance,stability and sustainable development of Z rural commercial bank,and provide experience reference for the same type of institutions in the prevention and control of NPL.Under the situation of financial supply-side structural reform,it is of great significance to encourage such financial groups as rural commercial Banks to improve the quality of credit assets and the ability to prevent risks for their stable and compliant development and the development of local real economy.