The formation of non-performing loans in commercial banks has long restricted the normal operation of commercial banks. Therefore, reducing non-performing loans has become the primary task of commercial banks at present. I would like to share with you the relevant contents of the impact of non-performing loans on commercial banks, hoping to help you.

What are the effects of non-performing loans on commercial banks? The formation of non-performing loans in commercial banks has long restricted the normal operation of commercial banks. Therefore, reducing non-performing loans has become the primary task of commercial banks at present. This paper comprehensively expounds the reasons for the formation of non-performing assets in commercial banks and the main measures to control the growth of non-performing loans.

Reasons for the formation of non-performing loans

The non-performing loans of commercial banks in China have been formed for a long time, so the reasons for non-performing loans of commercial banks in China are more complicated. The reasons for the formation of non-performing assets in commercial banks are very complicated, which can be roughly expressed in the following four aspects: first, most enterprises have not yet established a modern enterprise system and are not well managed; Second, local governments are eager to pursue political achievements, constantly asking banks to lend money for new and key projects and interfere in bank operations; Third, the legal system is not perfect, which leads to a large number of non-performing assets in commercial banks, and the legal awareness of commercial banks is weak; Fourth, the bank credit management mechanism is not perfect, and the modern bank staff are not responsible and have low quality.

Analysis on the causes of non-performing loans in state-owned commercial banks

The non-performing loans of state-owned commercial banks in China have been formed for a long time, so the causes of non-performing loans of commercial banks in China are complicated, mainly due to historical reasons and the influence of China's economic system reform. Of course, the defects of commercial banks' own management mechanism are also indispensable factors for the formation of non-performing loans.

Looking for solutions from the causes of non-performing loans

From the analysis of the previous two points, it can be seen that the main reason for the formation of non-performing assets of state-owned commercial banks is that state-owned banks have shouldered a special mission in the historical period of planned economy, but they have been impacted to some extent in the process of system transformation in China. With the deepening of China's active system reform and the improvement of market economy, the role of state-owned commercial banks has changed, and the historical mission of state-owned commercial banks has largely disappeared.

In recent years, the government has issued a series of policies, hoping to reduce the non-performing loan ratio of state-owned commercial banks: debt-to-equity swap of non-performing loans is 654.38+0.4 trillion; The state finance injected 270 billion yuan; The establishment of the China Banking Regulatory Commission (CBRC) has given the four major state-owned commercial banks hard targets to reduce non-performing loans, such as a 3%-4% reduction in the non-performing loan ratio and a 70-80 billion yuan reduction in the balance of non-performing assets within two years; Closing bankrupt financial institutions; Fully implement a series of measures such as the five-level classification of loans. It can be seen that the state has spared no effort in changing the external environment of state-owned banks and reducing the non-performing assets of state-owned commercial banks, which fundamentally provides conditions for state-owned commercial banks to reduce the non-performing assets ratio.

However, the internal system of state-owned commercial banks, especially the credit system closely related to the formation of non-performing loans, does not adapt to the changes of market economy and national policies, leading to the phenomenon of non-performing loans being stripped and added at the same time. Let's look at the characteristics of China Industrial and Commercial Bank's non-performing loans and credit system.

Disposal of non-performing loans

Second, what harm does the non-performing loan ratio have to commercial banks?

Impact of non-performing loans:

Banks are highly liquid enterprises. Non-performing loans will increase the debt burden of banks and increase their ability to absorb deposits, thus causing financial problems.

The non-performing loan ratio is high and the supporting capacity is strong. In recent years, banks in China are extremely cautious about lending, because there are too many non-performing loans, which affect their lending capacity.

Solve the problem of non-performing loans. If taken lightly, a large number of non-performing loans will also induce the intensity of social moral hazard, and may also lead to chain bankruptcy of enterprises, increasing financial risks and social crises.

Hello. Who can help me talk about the significance or benefits of solving the non-performing loans of rural credit cooperatives?

Let me talk about the harm of non-performing loans first.

1, the non-performing loan ratio is high, and the biggest harm is to affect the ability of banks to support the economy. The development of local economy in county can not be separated from credit cooperatives, and the economic pillar to support "agriculture, rural areas and farmers" is to increase loans to "agriculture, rural areas and farmers".

2. A large number of non-performing loans will also induce social moral hazard. I don't need to explain this to you, do I?

Meaning? Just look at it the other way around.

1. Improve credit.

2. It can better support the local economy.

3. Better support the development of small and medium-sized enterprises