The ways for banks to collect and dispose of bad loans can be roughly divided into two categories: one is non-litigation and the other is litigation. Non-litigation ways mainly include collection, joint collection, entrusted collection, policy collection and disposal collection; Litigation channels mainly include fair collection, arbitration collection, prosecution collection and criminal collection. In short, it is to use all legal means to claim creditor's rights from borrowers and guarantors and strive to recover the principal and interest of overdue non-performing loans. After recovering all or part of the principal and interest of non-performing loans through collection and disposal, the total amount of non-performing loans will be reduced, and the rate of non-performing loans will also be reduced (of course, the factors of total loans and new non-performing loans will also be considered).