Research On The Disposal Of Non-performing Loans Of Lanzhou Rural Commercial Bank

The commercial banks play a vital role in economy climate.Suppose there were major risks,the contributing influence on economy tend to be severe or even fatal.The non-performing loan ratio,known as one of the important norms to measure the operating capacity of commercial banks,serves as a reminder to notice the overall economy of a region or even a nation.In favor of international cases,there is a defined conclusion that the non-performing loan of these banks incites financial crisis by a large margin and even worse,often suspend the economy so seriously that the whole economy was plunged into vicious cycle.Given all this,all countries attach importance to manage and cope with issues related the non-performing loan of banks.Yet it turns out that the appropriate disposal the non-performing loan is hard to crack in the process of commercial practice for these banks.Therefore,there is great significance to figure out some measures to the disposal of the non-performing loan better and faster.Considering this context,this paper mainly arms to discuss the disposal of these issues.It reports the measures to respond to these issues of the non-performing loan of Lanzhou rural commercial bank by looking into the existing problems in management and analyzing the potential causes by studying present situation of this bank with the hope to give exercisable experience to other banks.In the first chapter,this paper sorted out the contributing factors to the non-performing loan and the existing findings put forward by some domestic and foreign scholars by means of looking through literatures.And in the second chapter,it expounded the related concepts,definition and categories of the non-performing loan,and also summarized such pertinent theory as credit theory,information asymmetry theory,borrower's background theory,prospective loan theory,and financial instability hypothesis and other theory etc.Those theories had offered theoretical proofs for the textual exploration.Then,this paper mainly started from analyzing the related data of the non-performing loan of Lanzhou rural commercial bank since its foundation in 2015 so as to justify all the factors such as present conditions and features and causes of the non-performing loan issues in this bank.Based on those conclusion conducted by the above analysis,coupled with practical situation and its features in operation,this paper analyzed and summarized the problems and the contributing causes of the management of the non-performing loan.Finally,this paper gave the feasible suggestion and measures to the disposal of the non-performing loan issues based on the above conclusions.