Z Rural Commercial Bank’s Analysis And Disposal Of Non-performing Loans

The report of the 19th National Congress of the Communist Party of China emphasized that it is necessary to resolutely fight the three major battles,including preventing and mitigating major risks.In 2018,the State Council’s government work report also proposed to grasp the three major battles of building a well-off society in an all-round way.Fighting against financial risks is the first big battle to be placed at the top of the three major battles.It is a " financial security dam that must be built for high-quality development.Effective disposal of financial non-performing loans is essential to resolve financial risks.In view of the positioning requirements of rural commercial banks for"serving agriculture,rural areas,small and medium-sized services,serving localities" and the high objective rate of non-performing loans of rural commercial banks,it is of great practical significance to analyze and dispose of non-performing loans of rural commercial banks.Based on the reasons and disposal experience of non-performing loans at home and abroad,this paper takes Z rural commercial bank as an example to analyze the status quo of Z-country commercial banks’ non-performing loans,and from the historical evolution of rural commercial bank management system,borrowers and rural commercial banks themselves.The paper analyzes the reasons in three aspects,and concludes that the non-performing loans of rural commercial banks are deeply affected by the historical changes of their management system,the subjective malice of borrowers,the problem of objective operation of borrowers,and the risk concept,credit management,process setting and incentive constraints of rural commercial banks.And the impact of the assessment mechanism.By analyzing the problems encountered in the process of disposing of non-performing loans of rural commercial banks in Z,it is concluded that the current methods for disposing of non-performing loans of Z rural commercial banks are relatively simple,and the single traditional methods of collecting and collecting are more and more difficult,and the transfer of non-performing loans and non-performing loans There are also problems in the transfer of income rights and market-based disposal methods such as debt-to-equity swaps.For example,the current transfer of non-performing loans is strictly restricted,the personal loans are not allowed to be transferred in batches,and the evaluation of non-performing loans is difficult.Complex,complicated procedures,long time,many parties involved,high cost,imperfect laws and regulations,etc.;debt-to-equity swaps are difficult to find,the model is immature,and the relevant operational regulations are not known.In addition,rural commercial banks use traditional means or market-based disposal methods.In many disposal methods,there are many disposal taxes and fees,high costs or current laws and regulations do not support.Based on the analysis of the causes and disposal problems of non-performing loans of rural commercial banks,this paper proposes the suggestions for the disposal of non-performing loans of Z rural commercial banks:First,it is recommended to improve the system process,clarify the department’s linkage responsibility,and open up green for the rapid disposal of special non-performing loans.The second is to improve the management mechanism for the collection and disposal of non-performing loans,such as strengthening the leadership of the organization,clarifying the objectives of the assessment,improving the incentives for collection,adapting to households,and adopting flexible measures for collection.The third is to establish a scientific assessment of non-performing loans.Incentives to improve asset recovery,control disposal costs,and reduce moral hazard.At the same time,it also proposed Z rural commercial banks to prevent and control new non-performing loans:First,adjust the credit management process,improve the process control risk mechanism;Second,do a real three-check on the real loan,the whole process to prevent and control credit risk;Improve the risk management system and conduct risk management and control in advance;Fourth,strengthen the construction of credit teams and improve the business capabilities of personnel.