Empirical Study On The Influence Of Government Intervention On Non-performing Loans Of City Commercial Banks

In recent years,it is not uncommon for commercial banks to incur huge losses or even eventually go bankrupt due to the rise of non-performing loan ratio.At present,the process of economic globalization is becoming more and more rapid.and financial liberalization is deepening.In the past,many potential problems of commercial banks have gradually been exposed,among which the most valuable problem is the increase of non-performing loans.At present,China’s financial system is still dominated by the banking industry.Whether it is the reform of the financial system or the marketization of interest rates,the government must play an important role in it.From the perspective of government intervention,on the basis of combing the previous literature and analyzing the relevant theories,this paper takes the uncertainty of monetary system and the nature of urban commercial banks’equity as regulatory variables,risk bearing and diversification as intermediary variables,and discusses the impact of government intervention on urban commercial banks’ non-performing loans by constructing panel models and multiple regression models.The empirical results show that:first,government intervention is significantly positively correlated with non-performing loans of urban commercial banks,that is.the higher the government intervention,the larger the scale of non-performing loans of urban commercial banks.Secondly,when the equity nature of urban commercial banks is different,the scale of non-performing loans of state-owned urban commercial banks is larger than that of non-state-owned urban commercial banks,so the role of government intervention in promoting non-performing loans of state-owned urban commercial banks is more obvious.When the uncertainty of monetary system is high,the scale of non-performing loans generated by urban commercial banks is larger.Further analysis of the path shows that diversification and risk-taking play an intermediary role in the relationship between government intervention and non-performing loans of urban commercial banks.Subsequently,suggestions were made for urban commercial banks to prevent non-performing loans,one is to optimize the government’s intervention mechanism for city commercial banks;The second is to grasp the degree of government intervention and improve the risk bearing level of urban commercial banks.The third is to reduce the proportion of government shareholding and reduce excessive administrative intervention.The fourth is to ensure the sustainability and effectiveness of monetary policy.