Abstract:
The banking environments in China are more diversity, even though the economic is
growing up than before, seems everything goes well. Actually the commercial banks'
credit risks are high. High credit risk of commercial banks has seriously threatened
the sustained and steady development of our economy. So in-depth analysis of the
influence towards credit risk of commercial banks is important practical significance
for solving the bank’s credit risk problem. This research is mainly examining the
quantitative effect of credit risk on the performance of one commercial bank in China
from year 2010 to year 2016. This research used the secondary data of China
construction bank. And the data to do the analysis is obtained from the bank's annual
report. Return on assets as the dependent variables are used to measure the
performance of the bank which measured by: non-performing loans, inflation rate,
GDP and bank size. In this research, the multiple linear regression models will be
used to measure the relative weighting of the independent variables (non-performing
loans, inflation rate, GDP and bank size) above on a dependent variable (return on
assets). Basic descriptive statistics was applied for trend analysis. As a result, the
research concluded that NPL, IR and SIZE have a significant relationship with
performance of China construction bank; but there is no significant relationship
between GDP and China construction bank.
