The five-level classification of loans refers to the five-level classification of loan quality by commercial banks according to the borrower's actual repayment ability, which is divided into five categories: normal, concerned, suspicious, secondary and loss. Among them, the last three items are non-performing loans.

First, attend classes normally

The probability of loan loss is 0. The borrower operates normally, and there are no factors affecting the repayment of loan principal and interest.

Second, the scope of concern.

The loan loss probability is 5%. The borrower operates normally and can repay the principal and interest of the loan as much as possible. However, there are some factors that are not conducive to repayment, which may lead to some negative effects on the repayment of loan principal and interest.

Third, suspicious classes.

The probability of loan loss is 30%-50%. The borrower's repayment ability has obvious problems, and it can't fully repay the loan principal and interest by relying on normal operating income, so it needs to resort to some other means, such as external financing, guarantee compensation, and disposal of collateral.

Four. Subcategory

The loan loss probability is 50%-75%. The borrower has been unable to repay the loan principal and interest through asset disposal, guarantee compensation and external financing. At the same time, due to some uncertain factors, such as merger, acquisition, pending litigation and other operations, the degree of loss can not be judged.

Verb (abbreviation of verb) loss category

The loan loss probability is 75%- 100%. It is impossible for the borrower to repay the loan principal and interest. Even if the legal procedures are fulfilled, there is little possibility of repaying or recovering the losses. There is no reason for the bank to keep the loan in the asset account and cancel it after completing the necessary legal procedures.