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What are the reasons for the formation of non-performing loans?
First of all, the external economic environment provides conditions for the existence of bad credit assets.

1. The imperfect market mechanism distorts the economic behavior of the government, enterprises and people.

2. Some state-owned enterprises are seriously short of funds, and bank loans are used as basic funds.

3. Distorted credit concept.

Second, the internal factors of state-owned commercial banks contributed to the increase and expansion of non-performing loans.

1, the loan management mechanism is backward and self-binding is not enough.

2. The loan risk monitoring mechanism is not perfect.

Operation method of non-performing loans

1. The bank shall set up a special institution or designate a special person for collection, and intensify the write-off of non-performing assets.

2. State-owned enterprises can implement shareholding system reform.

3. Carry out credit learning and education activities in enterprises, banking departments and the whole society.

4. State-owned commercial banks should gradually implement joint-stock system.

5. Deal with non-performing loans layer by layer.

6. Adjust the credit structure and increase the review of non-performing assets.

7. Establish an incentive and restraint mechanism to restrain people's behavior.