As of the end of June 2016, what is the balance of non-performing assets of commercial banks

A, as of the end of June 2016, how much is the balance of non-performing assets of commercial banks

According to preliminary statistics, as of the end of June, the banking industry trillion yuan, up 15.6% year-on-year; the various deposits of trillions of yuan, an increase of 10.7% year-on-year; the balance of loans of 106.69 trillion yuan, an increase of 13.0% year-on-year. Commercial banks non-performing loan ratio of 1.81%; banking finance 3.47 trillion yuan, up 16.1% year-on-year, provision coverage ratio remained at a high level of 161.3%; major commercial banks capital adequacy ratio of 13.2%, the core tier 1 capital adequacy ratio of 10.7%, an increase of 0.4 percentage points year-on-year

Two, commercial banks why the Non-performing loan rate rose

The CBRC has relevant documents stipulating that non-performing loans are an indicator for assessment, and in addition, each bank has corresponding business indicators, and the non-performing loan rate has a direct impact on the bank's operating results, so each bank is trying to find ways to reduce the non-performing loan rate in order to reduce risk and improve profitability

Thirdly, applying for online The fact that there are too many loans has resulted in a big data mess or net blackout, can this situation be recovered?

I don't know what kind of recovery you mean by recovery, is it deleting all the net black data to return to normal, or is it that credit is not affected?

First of all, you can be sure that it is impossible for you to delete these online credit data.

In recent years, the development of China's online lending platform is very rapid, a variety of online lending such as mushrooming constantly appear, there are formal and informal, and in the many online lending, some of them on the central bank credit, and some uploaded to the third-party credit system, and some of them do not even have the basic credit information, completely like the private sector.

On these online loan application records, once recorded by the system, want to delete the record is impossible. Even if the current central bank personal credit information retention time is only 5 years time, but it is only personal credit no longer show these negative information, does not mean that these negative information from the system to eliminate.

For those third-party credit bureaus, it's even more impossible to remove these data. Many online lending platforms now have access to third-party credit bureaus, and many of these credit bureaus' information is ****enjoyed, so it's possible that the online lending records that you apply for on a particular platform may be recorded by more than one credit bureau. So even if the data is deleted from one credit bureau, it's still possible that the other bureaus may retain the credit data.

And there's no exact rule on how long the data from third-party credit bureaus should be retained, so theoretically, as long as you've applied for an online loan, these third-party credit bureaus can access it.

Secondly, the black credit, as long as you pay off the debt, can be repaired with time

Whether it is the central bank's credit system, or a third-party credit agency's credit system, they will only objectively record your credit information, including your past record of online loans.

But there are a lot of online loan records does not mean that your credit is completely black, in fact, at present many credit institutions in the approval of the user's information, will focus on checking the user's credit information in the last two years, if you within the last two years of credit information is good, even if two years ago, there are a lot of online loan application records, a lot of financial institutions will not focus on the pursuit of the.

But currently there are a lot of black online loan records want to repair, and not simply that after two years, credit is automatically good, credit repair is a prerequisite, in general, there are the following.

First, all the online loan owed to pay off, never late, at least within the last two years can not have a late record. If your online loan overdue has been put there regardless, then your credit will remain in the black, even after two more two years will not be repaired.

Secondly, you can't have too many online loan application records in the last two years, nor can you have too many online loan inquiry records, or your credit will be considered black as usual.

Third, to properly maintain some formal loans or credit card use records. Many people, once the credit card becomes black, think that as long as all the credit or credit card overdraft completely stopped will be fine, in fact, this practice is not a wise practice. The so-called credit record, you have to have a record of the lending institutions in order to that judge your credit is good or bad, if everyone's credit black suddenly stop, and then there is no record, the financial institutions also do not know that you recently two years time personal credit in the end there is no improvement.

So after the credit black, in addition to pay off all the arrears can not appear late, you must continue to use some regular credit card or credit, and every month to maintain normal repayment, to maintain a good repayment record, then in two years time many financial institutions will recognize your credit has been improved.

Four, the reasons for the increase in non-performing loans

Question 1: What are the reasons for the rise in non-performing loans in China's banking sector, what countermeasures should be taken I. The rise in the non-performing loan ratio in the banking sector is a reflection of the macro-economic adjustments

The years from 2003 to 2013 are the decade in which China's economy experienced rapid development, this stage, China's nominal GDP average annual growth rate was as high as 16.8%, and the real growth rate was also 10.1%. Along with the growth in the size of the economy, the money supply grew from 19.05 trillion yuan to 13.598 billion yuan. During the economy's upswing, liquidity was abundant, investment opportunities were plentiful, and corporate credit demand was strong. At the same time, China's banking sector, after divesting itself of the burden of non-performing assets, became a market-oriented operation through stock reform and listing, unleashing the banks' growth momentum and boosting their asset size from 27.7 trillion yuan to 151.4 trillion yuan, a four-and-a-half-fold increase in a decade.

Enterprise expansion and bank development on the one hand complement each other, on the other hand, also for the current deterioration of the quality of bank assets buried hidden dangers: First, the overall leverage of the enterprise is high, according to the report of the Bank for International Settlements, China's corporate debt has reached 125% of the GDP, into the red zone (the ratio of the sum of corporate and personal debt to the GDP of the normal value of 100%); Second, the enterprise cross-industry Operation has become a trend, especially more involved in real estate, minerals and other fields; Third, the overall overcapacity, whether it is high energy-consuming electrolytic aluminum, iron and steel, or emerging photovoltaic, wind power, as well as shipbuilding and other industries are seriously overcapacity.

And there is the above risk potential "bank - enterprise" lending system is not sustainable. After entering the new normal, all kinds of relations are being adjusted, the original lending system in some of the hidden risks need time to digest and release. In terms of the occurrence of risks in bank credit assets, the "death of enterprises" corresponds to the three types of risks mentioned above, which are manifested in "high leverage rupture", "multiple investment failure" and "overcapacity liquidation". "Excess capacity clearance". The process of customer risk outbreak is also the result of the economic mechanism to remove these "stubborn disease" reflected.

Second, the banking industry non-performing loans rate rise is the economic adjustment of the countries *** with the phenomenon

Horizontally, the developed countries in the West after the subprime crisis, but also generally suffered a non-performing rate of bank loans rising stage. Among them, the U.S. banking sector in the subprime crisis outbreak of the year NPL ratio increased by 0.6 percentage points compared with the previous, risk exposure is mainly concentrated in the subsequent two years (08, 09 years loan NPL rate increase of up to 1.57 and 2.03 percentage points), and reached its peak in 2009 (5%), and then gradually fall back, on the whole, and the outbreak of the crisis and the impact of the gradual elimination of the process of the crisis is basically the same. Other developed countries' banking sector NPL ratios also show similar characteristics. It can be seen that the bank's NPL ratio rises during the economic downturn and falls back with the economic recovery is a common phenomenon around the world.

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U.S. GDP growth rate and bank NPL ratio. Data source WIND

Until now, the NPL ratio of banks in the above countries is still at a high level. The average NPL ratio of banks ranked in the top 20 global banks in terms of total assets is 3.50%. The NPL ratios of HSBC, BNP Paribas, JPMorgan Chase, Crédit Agricole, Barclays, Citibank, Royal Bank of Scotland, BPCE France, Santander, and Wells Fargo are all well above the 2% level, and some of them have even reached 8%.

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Non-performing loan ratio of banks in developed countries. Data source WIND

In comparison, the average NPL ratio of listed banks in China is 1.52%, which is still at a relatively low level. Even for Agricultural Bank of China, whose NPL ratio took the lead in exceeding 2% in the third quarter, the bank's NPL ratio will drop sharply to below 1.5% if the above-average provisioning is utilized for write-offs, taking into account the bank's high provisioning coverage ratio.

Three: China's banking sector still has room to cope with deteriorating asset quality

First, the macro-economy is gradually revealing positive factors. Although there is still downward pressure on the economy in the short term, the inertia of downward adjustment of some traditional industries and overcapacity is still large. But at the same time, new industries, new forms and new dynamics are accelerating, the contribution of consumption to economic growth continues to improve, the proportion of the tertiary industry is further increasing, and the rate of decline in exports is narrowing. The adjustment of macroeconomic growth structure provides opportunities for the banking industry to hedge the stock of risks.

Secondly, the risk management level of China's banking industry has made great progress. Most of them have established the corporate governance mechanism of modern commercial banks, and through the introduction and implementation of the Basel New Capital Accord, they have continuously strengthened and improved their risk management policies, tools, and systems, forming a more systematic wind control system, and their capital's ability to offset risks has been continuously strengthened.

Third, before the massive outbreak of non-performing loans, banks have begun to realize some of the problems and take corresponding measures ...... >>

Question 2: What are the causes of non-performing loans lack of money. Not on time repayment

Question 3: China's commercial banks non-performing loans status, composition and its reasons for the emergence of a. China's commercial banks non-performing assets status quo, characteristics, and causes of analysis?1.China's commercial banks non-performing assets status quo? As we all know, China's commercial banks non-performing assets amounted to a huge amount, the reality is not optimistic: four state-owned commercial banks accounted for 80% of the total assets of the national banking industry, but due to the planned economic period and the beginning of the reform on the back of the heavy burden is difficult to unload, a large number of credit funds precipitation and dead stagnation, the return on assets in 1998 was less than 0.2% in 1999, the books need to be written off of the stagnant loans of the total amount of its loans, 2.7%. 2.7%, but together with the overdue and stagnant loans to be written off, the ratio of all bad debts was 8%-9% (the ratio of bad debts did not include the assets that had been divested and the conversion of debts into shares). According to the total loan balances of the four major state-owned commercial banks, which account for more than 60% of the total balances of all financial institutions, a bad debt ratio of 8%-9% would amount to 500-600 billion yuan, and the four major commercial banks had 350 billion yuan of non-performing assets divested in 1999, and nearly 100 billion yuan of debt-to-equity conversion agreements signed with enterprises after independent appraisal. In addition, the problem of non-performing assets of dozens of joint-stock small commercial banks is also quite serious (the incremental and stock of non-banking financial non-performing assets such as more than 50,000 rural credit unions, about 2,000 urban credit unions and local trust and investment companies are even more prominent). . From this we can see that, although the central government from 1995 since the national financial work management conference, the requirements of the commercial banks to the non-performing assets ratio will be reduced by a certain rate each year, the last two or three years of the bank's loan quality has been improved, but the ratio of non-performing assets is still high, the risk of credit assets is still large. ?2. The characteristics of non-performing assets of China's commercial banks (a) the amount of non-performing assets is huge, and the proportion of non-performing loans is relatively high.? (ii) The causes of non-performing assets of banks in China are complex. China's bank non-performing assets is the result of a combination of factors. Among them, there are both historical reasons and institutional reasons (such as the lack of separation of government and enterprises as well as mismanagement of state-owned enterprises and state-owned banks, etc.), as well as the impact of policy and legal changes, etc.? (C) special relationship of interest. In foreign countries, enterprises and banks are independent market economic subjects, the relationship between banks and enterprises is relatively clear; China's state-owned enterprises and banks are state-owned, the relationship between banks and enterprises is relatively fuzzy. As state-owned commercial banks and state-owned enterprises are state-owned, the non-performing claims of state-owned commercial banks and the debt problems of state-owned enterprises are two aspects of the same problem. State-owned commercial banks non-performing assets problem (of course, state-owned commercial banks and also have some responsibility) is the essence of the debt problem of state-owned enterprises, is the state-owned enterprises mismanagement, low efficiency, lack of competitiveness and other comprehensive performance.? (D) non-performing assets type special. In foreign countries, most of the bank's non-performing assets are manifested as real estate loans or stocks and other assets, which have a high value in itself, while the non-performing loans of our banks are mainly credit loans, such as a large number of non-performing loans to foreign trade enterprises, and so on. In short, the near-term purpose of cleaning up the non-performing assets of state-owned commercial banks is to eliminate the financial pitfalls and help the state-owned enterprises out of trouble, while the ultimate goal is to make the state-owned banks and state-owned enterprises lightly loaded, to realize the strategic transformation of the operating mechanism of the state-owned banks and state-owned enterprises, and to safeguard the financial security of the national economy. 3.Analysis of the causes of non-performing assets of China's commercial banks? The reasons for the formation of non-performing assets are complex: both institutional policy, but also in terms of business management; both external and internal; both historical and practical.? (I) from the institutional aspect, the traditional planned economy system of capital supply system and fiscal reform after the "pull to loan" formed by the banks and enterprises dependence mechanism, so that a large number of state-owned bank loans in the state-owned enterprises in the precipitation, stagnation, is the historical reasons for the emergence of non-performing assets. (ii) From the aspect of the behavior of the border is too large, especially the excessive intervention of the local, so that the independent operation mechanism of state-owned commercial banks exists in name only, resulting in the financialization and capitalization of credit funds, is the external causes of the formation of non-performing assets. (C) From the enterprise side, the operating mechanism of state-owned enterprises has not yet been truly established. The low economic efficiency of most state-owned enterprises is the root cause of non-performing assets.? (d) From the bank side, the non-marketization of the operation and management of state-owned commercial banks and the lack of a sound credit constraint mechanism are the direct causes of the generation of non-performing assets.? First of all, commercial banks in the asset management there are great defects, loan "three checks" system is not really implemented, credit is not unified. Secondly, due to the existing credit personnel of many institutions with poor business quality, and individual personnel of the legal system is very poor, violations of rules and regulations occur from time to time, artificially caused credit risk losses, a serious threat to the safe operation of credit assets. Finally, the lack of a set of strict supervision mechanism ...... >>

Issue 4: Non-performing Loan Causes and Countermeasures Non-performing Loan Records or Bad Credit Records mainly refer to:

1, Loan Currently Late;

2, Credit Card Currently Late;

3, Quasi-credit Card Existence of Overdraft for More than 180 Days Without Repayment Records (Including Card Fees and Annual Fees);

4, Credit Card Existence of Nearly 12 months the number of outstanding minimum payment more than 6 records (including card fees, annual fees);

5, a single loan exists in the last 24 months more than 6 consecutively overdue records (including the guarantor on behalf of the repayment) or cumulative overdue more than 10 records (including the guarantor on behalf of the repayment);

6, a single loan exists in the cumulative overdue more than 24 records;

7, the existence of the loan Guarantor on behalf of the repayment record;

8, loans in the last 24 months there is a rollover (extension) or capital against debt and other records;

9, there is a record of being due to bad credit.

Question 5: What are the reasons for the bank's non-performing loans are non-performing loans is that the loan enterprise is unable to repay the loan or refuses to repay the loan, after the loan period is approaching, did not repay the loan.

The main thing is that the lending money to the borrowing unit does not have a clear understanding of the situation, overestimated the other party's ability to repay, more than 90% of non-performing loans is because of the lending reviewer did not carefully understand the lending object or intentionally lending lending conditions caused.

Question 6: What are the causes of bad loansLoaners generally need to meet the following conditions:

1, in China has a fixed residence, local urban permanent residence, 18-65 years of age of Chinese citizens;

2, compliance with the law, there is no violation of the law and bad credit record;

3, have a legitimate and have a stable economic income of the good Occupation, with the ability to repay the principal and interest of the loan on time;

4. Other conditions stipulated by the bank.

Question 7: How do commercial banks control new non-performing loans However, many banks still have more serious credit risk control concept and behavioral deviations, so that the non-performing rate of credit assets is still at a high level. The author believes that to effectively control credit risk, to put an end to the large number of non-performing loans again, should focus on the following three aspects of work: accelerate the construction of the credit system non-performing loans, the most direct and fundamental reason is the lack of credit of enterprises and individuals (borrowers). According to the statistics of authoritative organizations, as of the end of 2000, among the enterprises with accounts in the four state-owned commercial banks, the number of enterprises evading debts amounted to 32,140, and the principal and interest of suspended bank loans amounted to 185.1 billion yuan. The resulting moral hazard will erupt on a larger scale and over a longer period of time. Therefore, it is urgent to speed up the construction of the credit system, which is a fundamental measure for commercial banks to control non-performing loans. The most closely related to commercial banks is the credit rating of customers. The specific approach to establishing a rating system for enterprises and individuals is to summarize financial records, establish a financial credit system, and on that basis summarize other credit records, such as tax payments, and gradually establish a unified, standardized and perfect credit rating for enterprises and individuals nationwide. The credit ratings of enterprises and individual customers should be adjusted annually. Establishment of Credit Risk Management Culture Commercial banks in Europe and the United States have their own credit management culture, and it is easier for credit personnel to form their own credit value orientation. Tight credit management system is a hard constraint, advanced credit management culture is a soft constraint, it is this combination of soft and hard, so that the European and American banks over the years has been more strict control of credit risk. In recent years, some of China's commercial banks have also formed some basic views in this regard, such as "even higher returns can not make up for the loss of principal", "the biggest risk is the lack of awareness of risk" and so on, but the construction of the credit risk culture is still insufficient. Strengthening the construction of risk control - Implementing the review framework of "separation of audit and loan" should establish "the right to formulate credit system", "the right to execute loan issuance" and "the right to risk management". The organizational structure for loan review should be established with the separation of the powers of "credit system formulation", "loan issuance execution" and "risky loan disposal", and the establishment of a relatively independent risk investigation constraint system, risk review constraint system, risk approval constraint system and risk inspection constraint system.

-Establishing an intuitive and scientific risk early warning system should establish a system of indicators for analyzing an enterprise's loan-carrying capacity, and control the enterprise's loan scale by analyzing the enterprise's ability to bear the liabilities to the maximum extent possible; meanwhile, fully utilizing the enterprise's cash flow indicators to analyze the enterprise's solvency; and strengthening the analysis of the enterprise's profitability to predict the enterprise's development prospects. Meanwhile, we fully utilize enterprise cash flow indicators to analyze the solvency of enterprises and strengthen the analysis of profitability of enterprises to predict the prospects and trends of enterprise development; strengthen the analysis of the comprehensive contribution of loan customers, assess the credit rating of loan customers and make loan investment and management decisions accordingly. --Increase the implementation of the "three investigations" of loans Both in the past and now, commercial banks have the problem that the "three investigations" system is a mere formality. "Pre-credit investigation" requires investigators to go into the enterprise to verify the relevant data, but it is precisely at this "juncture", the credit staff is often easy to use the materials and statements provided by the enterprise data, to do a superficial article. "Post-credit inspection" requires credit officers to go deep into the enterprise to monitor its economic activities and flow of funds, and carefully analyze the changes in loan risks. However, many credit officers relax their follow-up management of the lending enterprises and are unable to grasp the changes in the production and operation of the enterprises at any time. "Post-credit management" has been reduced to a routine inspection, which cannot truly reflect the actual situation of the enterprise. In addition, the bank's risk monitoring system for financial indicators of enterprises is too complicated and not easy to operate.

Question 8: How to control the new non-performing loans However, many banks still exist in a more serious credit risk control concept and behavioral bias, so that the non-performing rate of credit assets is still at a high level. The author believes that to effectively control credit risk, to eliminate the large number of non-performing loans again, should focus on the following three aspects of work: accelerate the construction of the credit system non-performing loans, the most direct and fundamental reason is the lack of credit of enterprises and individuals (borrowers). According to the statistics of authoritative organizations, as of the end of 2000, among the enterprises with accounts in the four state-owned commercial banks, the number of enterprises evading debts amounted to 32,140, and the principal and interest of suspended bank loans amounted to 185.1 billion yuan. The resulting moral hazard will erupt on a larger scale and over a longer period of time. Therefore, it is urgent to speed up the construction of the credit system, which is a fundamental measure for commercial banks to control non-performing loans. The most closely related to commercial banks is the credit rating of customers. The specific approach to establishing a rating system for enterprises and individuals is to summarize financial records, establish a financial credit system, and on this basis summarize other credit records, such as tax payments, and gradually establish a unified, standardized and perfect credit rating for enterprises and individuals nationwide. The credit ratings of enterprises and individual customers should be adjusted annually. Establishment of Credit Risk Management Culture Commercial banks in Europe and the United States have their own credit management culture, and it is easier for credit personnel to form their own credit value orientation. Tight credit management system is a hard constraint, advanced credit management culture is a soft constraint, it is this combination of soft and hard, so that the European and American banks over the years has been more strict control of credit risk. In recent years, some of China's commercial banks have also formed some basic views in this regard, such as "even higher returns can not make up for the loss of principal", "the biggest risk is the lack of awareness of risk" and so on, but the construction of the credit risk culture is still insufficient. Strengthening the construction of risk control - Implementing the review framework of "separation of audit and loan" should establish "the right to formulate credit system", "the right to execute loan issuance" and "the right to risk management". The organizational structure for loan review should be established with the separation of the powers of "credit system formulation", "loan issuance execution" and "risky loan disposal", and the establishment of a relatively independent risk investigation constraint system, risk review constraint system, risk approval constraint system and risk inspection constraint system.

-Establishing an intuitive and scientific risk early warning system should establish a system of indicators for analyzing an enterprise's loan-carrying capacity, and control the enterprise's loan scale by analyzing the enterprise's ability to bear the liabilities to the maximum extent possible; meanwhile, fully utilizing the enterprise's cash flow indicators to analyze the enterprise's solvency; and strengthening the analysis of the enterprise's profitability to predict the enterprise's development prospects. Meanwhile, we fully utilize enterprise cash flow indicators to analyze the solvency of enterprises and strengthen the analysis of profitability of enterprises to predict the prospects and trends of enterprise development; strengthen the analysis of the comprehensive contribution of loan customers, assess the credit rating of loan customers and make loan investment and management decisions accordingly. --Increase the implementation of the "three investigations" of loans Both in the past and now, commercial banks have the problem that the "three investigations" system is a mere formality. "Pre-credit investigation" requires investigators to go into the enterprise to verify the relevant data, but it is precisely at this "juncture", the credit staff is often easy to use the materials and statements provided by the enterprise data, to do a superficial article. "Post-credit inspection" requires credit officers to go deep into the enterprise to monitor its economic activities and flow of funds, and carefully analyze the changes in loan risks. However, many credit officers relax their follow-up management of the lending enterprises and are unable to grasp the changes in the production and operation of the enterprises at any time. "Post-credit management" has been reduced to a routine inspection, which cannot truly reflect the actual situation of the enterprise. In addition, the bank's risk monitoring system for financial indicators of enterprises is too complicated and not easy to operate.

Question 9: Why did the stock of non-performing loans at large commercial banks increase in 2014Loan conditions:

At least 18 years old; working, with social security or provident fund;

Personal insurance;

House, car (monthly payment is also acceptable);

Good credit.

Satisfy one of the above can do the loan, the minimum online loan to have a source of repayment.

Question 10: The reasons for the formation of non-performing loans in China's commercial banks and ways to solve them - to the Agricultural Bank of China as an example who can help me 20 points a. China's state-owned banks non-performing loans causes

Banks non-performing assets in addition to the causes of some state-owned enterprises can not adapt to the requirements of the market economy, the operation and financial management of the difficulties encountered in addition to can be divided into the external economic environment and the internal factors of commercial banks.

First. The external economic environment for the generation of non-performing credit assets to provide the conditions on which to survive.

1. The unsoundness of the market mechanism distorts the economic behavior of, enterprises and people. In the process of transition from a planned economy to a market economy, the local more or less acted as a mediator with the state-owned commercial banks credit funds, too much intervention in bank affairs, thus disguised as misleading the bank's operation as, distorting part of the loan reasonable investment and direction. At the same time due to China's market economy is weak, the market mechanism is not sound enough,, enterprises and the public of commercial banks operating behavior commercialization, loan marketization, the principle of good faith in the transaction can not be well understood and implemented, thus forming the economic, financial, legal, social and civil environment, the bank's rights and interests have been harmed, the non-performing loans accumulate day by day, the accumulation of heavy and difficult to return.

2. Some state-owned enterprises are seriously undercapitalized and bank loans are used as paving funds. Enterprises in the production and operation process need to occupy the capital is not equal, its minimum amount is the enterprise must often occupy, in the need for the least amount of funds will not be idle out, this minimum amount of paving funds, should use the capital, and not appropriate to use the bank loan, the use of the loan can not be returned. Since the reform and opening up, the financial arrangements for the vast majority of economic construction funds for capital construction, the old enterprises need to increase the liquidity almost entirely rely on bank loans, and even some of the new enterprises are basically the use of bank loans built. This makes some state-owned enterprises are over-indebted, a large number of bank loans can not be recovered on maturity.

3. The distortion of the concept of credit. As the phenomenon of enterprises defaulting on loans has existed for many years, and most of the defaulters have not been harmed by the interests, some even got the benefits, over time it makes people's credit concepts transformed, distorted, upside down, coupled with a small number of localities and the competent authorities to safeguard the social credit ineffective, acquiescence of some state-owned enterprises to pass their losses to the state-owned commercial banks, which, to a certain extent, also have not the The correct concept of the loan can be recovered in a timely manner not enough attention to the work of the expiry of the loan collection is not tight, these are serious damage to the interests of the bank, resulting in the aggravation of the bank's non-performing loans.

Second. Internal factors of state-owned commercial banks have contributed to the increase and expansion of non-performing loans.

1. Loan management mechanism is backward, not enough self-restraint. In recent years, the business development of state-owned commercial banks has soared, but it should not be overlooked that there is a focus on the number of scale in loan management, light quality and efficiency of the sloppy operation tendency, heavy loan light management, heavy release light collection, tracking is not in place, not enough binding force, especially in violation of the operation is more. It can be said that the backwardness of the loan management mechanism, weak management links is a fundamental reason for the emergence of non-performing loans.

2. Loan risk monitoring mechanism is not sound. That credit management is more important than people, the lack of enterprise legal person or business director of the quality, quality and personality and other aspects of the comprehensive consideration: credit risk monitoring system is not complete, limited to risky loan statistics, the lack of pre-credit, credit and post-credit risk assessment, can not be done in a timely manner to grasp the loan enterprise's assets, liabilities, profits and losses of the situation: early warning mechanism has not been established, to a large extent can not effectively monitor the credit risk. monitoring of credit risk.

3. Preventing and resolving non-performing credit assets is an arduous and complex systematic project for state-owned commercial banks, which must look inward, identify breakthroughs, take a multi-pronged approach to address both the symptoms and the root causes of the problem, and update the concept of non-performing credit assets to a high level of awareness of the resources that can be tapped into.

II. Consequences of the existence of non-performing loans in state-owned commercial banks

In 2006, foreign banks formally enjoyed national treatment in China, and state-owned commercial banks will face fierce competition from foreign banks. If the ratio of non-performing loans does not come down, the bank's operating efficiency will be seriously affected first of all. It is difficult to recover the interest on non-performing loans, and the bank has to pay the interest on depositors' deposits. On the other hand, a large amount of the bank's assets are deposited in non-performing loans, and the liquidity of the bank's assets is greatly reduced, which affects the bank's operating efficiency. With the accelerated commercialization of banks. The color of the bank will become more and more light, the bank to rely on their own reputation in the community, relying on the bank's operating efficiency and quality of service to win customers, if the proportion of non-performing loans is high and the efficiency of the decline, the bank will be difficult to survive, will be in the competition with foreign banks in the not ...... >>