Abstract:
The commercial environments in China are more diverse, even though the
economic is growing up than before, seems everything goes well. Actually the
commercial banks non-performing loans are increasing. Non-performing loans are
the leading indicator of the financial crisis, the rising non-performing loan ratio
has seriously threatened the sustained and steady development of our economy. So
be analysis of the influence towards non-performing loans of commercial banks is
important practical significance for solving the bank’s problem. This research
aims to find the factors that influence the non-performing Loan in Chinese
commercial banks. This research is quantitative research method by using
secondary data taken from year 2007~year 2016 from 6 commercial banks.
Through the previous research results both from domestic and foreign, the
researcher finds that most domestic researcher focus on macroeconomic, and it is
rare to examine the influence of the internal bank's on the non-performing loan
ratio. The researcher try to explore the influencing factors of the non-performing
loan of commercial banks from the macroeconomic and internal bank's financial
ratio. The results of the empirical analysis: return on asset and provision coverage
ratio has a significant negative influence towards the non-performing loan; net
interest margin and bank asset size have a significant positive influence towards
non-performing loan. The influence of GDP growth rate towards non-performing
loan is not significant.
