Analysis On Influencing Factors Of Non-performing Loans Of Urban Commercial Banks In Shandong Province

This paper studies the factors affecting the non-performing loan ratio of Shandong city commercial banks,and extracts important factors from five aspects: regional macroeconomic development,monetary policy,credit and financial development depth,local government fiscal revenue and expenditure,and bank's own business behavior.In this paper,11 Shandong Province City Commercial Banks were selected as sample banks.Using the WInd database and the annual reports of various city commercial banks,the panel data of the non-performing loan ratio and its influencing factors of the Shandong City Commercial Bank in 2009-2016 were compiled.The econometric analysis method gives the degree and direction of the impact of various influencing factors on the non-performing loan ratio of commercial banks in Shandong Province.The regression results show that the ratio of regional loan balance to GDP(ldgdp),one-year loan benchmark interest rate(ylir),cost-to-income ratio(cir)is significantly positively correlated with the non-performing loan ratio of Shandong City Commercial Bank,and the growth rate of regional loan balance(lbg),money supply M2 growth rate(m2r)and Shandong Province City Commercial Bank's non-performing loan ratio showed a significant negative correlation.Through empirical analysis,it puts forward relevant policy recommendations for the prevention and mitigation of non-performing loans by Shandong City Commercial Bank.By regulating monetary policy,it can effectively control non-performing loan ratio or credit risk.For city commercial banks,how to effectively prevent and resolve non-performing loans in the existing macro environment is a problem that city commercial banks and local governments should pay attention to.While the government strengthens control,the city commercial banks should: to reasonably assess the potentialimpact of economic macro-environmental fluctuations,rationally control credit growth,and establish a sound risk control system.Through the empirical analysis to analyz the factors affecting the non-performing loan rate of Shandong city firm,we hope that the research results of this paper can be of reference value to the control and management of the non-performing loan rate of Shandong city firm.