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Web of Proceedings - Francis Academic Press

Research on the Factors Affecting Non-Performing Loan of Chinese Commercial Bank

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DOI: 10.25236/icess.2019.198

Author(s)

Fei Zhou, Xuanfeng Xu and Shoudu Xie

Corresponding Author

Fei Zhou

Abstract

The rise of non-performing loans has weakened the core competitiveness of commercial banks, and also hindered the reform and innovation of China's banking industry and the stable operation of the macro economy. Therefore, researching the problem of non-performing loans has its theoretical and practical significance. This paper selected 10 listed Banks as research objects, adopted the panel data from the first quarter of 2012 to the third quarter of 2018, and explored the influencing factors of the non-performing loan ratio through the multiple regression model. The conclusions have been shown as follows:(1) PMI, bank provision coverage and net interest margin have a significant negative impact on non-performing loans;(2) total loans have a significant positive impact on non-performing loan ratio. The research shows that the government's macro-control and bank management can be put forward to prevent and dispose of China's commercial Banks non-performing loans.

Keywords

Commercial bank, Non-performing loan, Empirical analys