This topic examines the knowledge points of non-performing loan ratio.

According to the Guidelines on Loan Risk Classification issued by China Banking Regulatory Commission in 2 0 0 7 (hereinafter referred to as the Guidelines), commercial bank loans are at least divided into five categories: normal, concerned, secondary, doubtful and loss, and the latter three categories are collectively referred to as non-performing loans.

Non-performing loan ratio is the ratio of non-performing loan balance to loan balance, which should generally not be higher than 5%. Generally, the loan concentration of a single customer should not be higher than 10%. The ratio of non-performing assets is generally not higher than 4%, and the total correlation is generally not higher than 50%.