Abstract:
Commercial banks have always been the core institutions of economic development, and the development level of commercial banks will affect the development of China's economy. Non-performing loans not only affect the security, stability and profitability of banking, but sometimes even become the fuse of the financial crisis. After years of reform and innovation in the Chinese banking industry, the non-performing loan ratio has fallen sharply, and the problem of non-performing loans seems to have eased. However, there are still many potential risks. Therefore, analyzing the influencing factors of non-performing loans of commercial banks in China and formulating practical and feasible management strategies have become the top priorities of China's banking industry and are of great significance to the development of China's banking industry and financial markets. There are a variety of indicators to measure the development of commercial banks. This paper studies the credit risk faced by commercial banks in China from the non-performing loan ratio of commercial banks, and finds the financial ratio that affects commercial banks from the analysis and proposes recommendation. This paper first expounds the definition of non-performing loan ratio, then studies the relevant theories and methods of non-performing loan ratio of commercial banks, and then verifies the hypothesis of this study by descriptive analysis and STATA analysis of the research data and analysis of the results. In the end, both commercial banks and the Chinese government need to take some measure to curb the non-performing loan ratio.
