Non-performing loans are divided into the following categories:

1. Normal loan: defined as a loan with no sufficient reason to suspect that the principal and interest of the loan cannot be repaid in full and on time.

② Interest-related loans are defined as loans with principal and interest, but there are some factors that may adversely affect repayment.

The borrower's repayment ability is obviously problematic. If the principal and interest of the loan are fully repaid, even if the guarantee is implemented, it may cause a

(4) The definition of suspicious loan is that the borrower cannot determine the full amount and cause significant losses.

5. Loss loans refer to loans that can be recovered by taking all possible measures or all necessary legal procedures.

After classifying all kinds of loans, the following three types of loans total non-performing loans.

Second, what is a non-performing loan?

The credit management of commercial banks generally adopts a five-level classification system, which divides loans into five categories: normal, concerned, secondary, suspicious and loss.

Five kinds of loans are defined as:

Normal: The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.

Note: Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment.

Secondary: The borrower has obvious problems in repayment ability, and cannot fully repay the loan principal and interest by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.

Suspicious: the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.

Loss: After taking all possible measures or all necessary legal procedures, the principal and interest are still unrecoverable, or only a small part can be recovered.

Generally speaking, the latter three types of loans, namely subprime, doubtful and loss-making loans, are called non-performing loans.

3. What are the four categories of non-performing loans of banks?

Non-performing loans are divided into the following categories:

1. Normal loan: defined as that the borrower can perform the contract and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.

② The definition of concern loan is that although the borrower has the ability to repay the principal and interest of the loan at present, there are some factors that may adversely affect the repayment.

(3) Subprime loan: It is defined as that the borrower has obvious problems in repayment ability and cannot fully repay the principal and interest of the loan by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.

(4) The definition of suspicious loan is that the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.

⑤ Loss loans refer to loans whose principal and interest cannot be recovered or only a small part can be recovered after all possible measures or all necessary legal procedures are taken.

After classifying all kinds of loans, the following three types of loans total non-performing loans.

4. What is the four-level classification of loans?

The five-level classification system divides commercial loans into five categories according to the degree of inherent risk: normal, concerned, secondary, suspicious and loss.

This classification method is that the bank mainly determines the risk degree of loan loss according to the borrower's repayment ability, that is, the actual ability to repay the loan principal and interest, and the latter three categories are called non-performing loans. The previous four-level loan classification system divided loans into four categories: normal, overdue, sluggish and loss.

Five-level classification is recognized by the international financial industry as the quality standard of bank loans. Based on dynamic monitoring, this method continuously monitors and analyzes the borrower's cash flow, financial strength, collateral value and other factors to judge the actual loss of the loan. In other words, the five-level classification can no longer judge the loan quality according to the loan term, but can more accurately reflect the real situation of non-performing loans, thus improving the bank's ability to resist risks.

In the past, the classification method of non-performing loans in banks was "one loan exceeds two loans" (overdue loans refer to loans that cannot be repaid after the loan contract expires, sluggish loans refer to loans that have not been repaid after one year, and non-performing loans refer to loans that cannot be recovered), which is a post supervision management method based on the loan term. The disadvantage of "one excess and two retention" is to cover up many problems in the quality of bank loans. For example, checking the loan quality according to the loan maturity time will lead to the phenomenon of borrowing new loans and returning old ones, and it is easy to turn non-performing loans into normal loans, without actually reducing risks. This classification is difficult or even impossible to achieve the purpose of improving the quality of credit assets, while the five-level classification overcomes its weaknesses and can reflect the profit and loss of commercial banks in time, so it becomes the choice of management methods to improve loan quality.