1. When the economic development situation is good, borrowers tend to pursue profits and want to expand the scale of reproduction, which leads to an increase in bank loans, that is, banks have too much debt. When the economy is in a downturn, borrowers do not have enough funds to repay their debts, which leads to an increase in non-performing loans of commercial banks.

2. The reform of state-owned commercial banks has strengthened the internal management of banks, and the ratio and balance of non-performing loans have been relatively reduced, and the balance of loans at the end of the year has stabilized. In addition, after deflation ended in 2002, the real rate of return of enterprises rose.

3. The macro factors that affect the non-performing loans of commercial banks mainly include economic system, laws and regulations, macroeconomic development and supervision system.