The Formation Mechanism And Influencing Factors Of Non-performing Loans In Rural Commercial Banks

Since the central government proposed to vigorously support the development of "agriculture,rural areas and farmers" and accelerate the promotion of rural financial reform,rural commercial banks have gradually become important regional financial service institutions in my country that are responsible for farmers’ poverty alleviation and income increase,focus on refined agricultural production,and promote high-quality rural development.In recent years,my country’s rural commercial banks have developed rapidly,and their assets currently account for 10.45% of the overall banking industry.They have become a force that cannot be underestimated in the modern financial system.However,its non-performing loan ratio has been rising year after year and remains high,far exceeding other commercial banks.The intensified imbalance between "quality" and "quantity" hinders its sustainable development to a certain extent.plate.Therefore,it is urgent to deeply discuss the problem of non-performing loans of rural commercial banks,which is of great significance for effectively preventing and controlling regional financial risks,ensuring the healthy operation of the financial system,and promoting the development of the real economy with high quality.Under this background,this paper starts from the perspective of the internal management of 39 rural commercial banks in different regions and the external financial ecological environment of the regions where they are located,and constructs the construction from five dimensions: economic foundation,government behavior,financial development,credit culture and bank operation characteristics.Model framework of the generation mechanism of non-performing loans of rural commercial banks.Based on previous literature and "Evaluation of Financial Ecological Environment in China",a total of10 main influencing factor indicators are selected,and the influence path of specific factors and variables on the generation of non-performing loans of rural commercial banks is deeply explored.The theoretical model is then empirically tested using a fixed-effects model.In addition,this paper also conducts grouped regression analysis according to whether the sample rural commercial banks are listed or not.The research results show that: regional economic growth,industrial structure upgrading,government intervention,financial technology development level,financial deepening level,credit culture level,and banking business diversification level have a significant negative impact on the non-performing loan ratio of rural commercial banks,that is,curbing non-performing loans.The loan-to-deposit ratio has a significant positive impact on the non-performing loan ratio,which catalyzes the generation of non-performing loans of rural commercial banks;while financial regulation and loan concentration only have a significant positive impact on the generation of non-performing loans of listed rural commercial banks.Further analysis found that the influence of various factors on the non-performing loans of listed and unlisted rural commercial banks is different.This paper expands the research perspective of the non-performing loan generation mechanism of rural commercial banks from the above five dimensions.Finally,based on the above theoretical mechanism and empirical analysis,corresponding policy suggestions are put forward to prevent and control the rise of the non-performing loan ratio of my country’s rural commercial banks: First,maintain regional economic stability and seek progress,and promote the optimization and transformation of industrial structure;second,strengthen effective government governance,The third is to embrace financial technology and accelerate financial deepening;the fourth is to improve the construction of the credit system and create a good credit atmosphere;the fifth is to improve the operation and management level of rural commercial banks and steadily promote the listing.