1. What is the classification of non-performing loans?
Poor loan classification means that the borrower fails to repay the principal and interest of the loan on time or violates other terms in the loan contract.
2. Types of loans with poor classification:
Overdue loan: the borrower fails to repay the loan according to the schedule stipulated in the agreement.
B. Non-performing loan: the borrower has been in arrears for a long time and failed to collect it for many times, which is finally determined to be irrecoverable.
C. Interest-related loans: There are potential risks, but they have not reached the level of overdue or bad debts.
D impairment reserve: a part of the loan amount drawn by the lending institution according to the risk assessment results is used as a reserve to prevent bad debts.
3. The impact of non-performing loan classification:
A. For lending institutions: Non-performing loans will increase the risk exposure of lending institutions, which may lead to losses and have a negative impact on their asset quality and profitability.
B. For the borrower, non-performing loans will reduce the borrower's credit record, make it difficult for him to obtain future financing opportunities, and may lead to legal proceedings and the seizure or auction of secured items.
C for the overall economy: too many non-performing loans will affect the stability of the financial system and adversely affect economic growth.
Summary:
Poor loan classification refers to the situation that loans issued by lending institutions are in default, overdue or irrecoverable. The main types include overdue loans, non-performing loans and concern loans. Non-performing loans have a negative impact on lending institutions, borrowers and the overall economy.
Extended data:
According to the regulations of CBRC, commercial banks should classify loans according to certain standards. The classification of non-performing loans will affect the capital adequacy ratio and profitability of banks, so banks will generally take measures to manage risks and write off bad debts. At the same time, the regulatory authorities also require banks to strengthen credit review and risk assessment, improve the rigor and accuracy of loan review and reduce the risk of non-performing loans.