cause
There are many reasons for the formation of non-performing loans, which are nothing more than the primary factors from the outside of the bank and the endogenous factors from the internal management of the bank.
Main external factors of banks
(1) Borrower factor. It may be that the borrower's internal management is poor, and the product market is shrinking. It may also be that the borrower deliberately evades bank debts by restructuring and lacks repayment consciousness. (2) Policy factors. Due to the lack of continuity of macroeconomic policies, the frequency and amplitude of economic fluctuations are high, and the pressure of credit expansion and contraction is considerable. In the period of macro-tightening and economic adjustment, a large number of loans are often deposited. (3) Administrative intervention factors. Mainly manifested in the non-performing loan ratio caused by external factors of banks.
Under the pressure of local government and squeezed by local finance, banks are forced to issue a large number of encouraging loans and rescue loans, and the loan behavior is administrative and the credit funds are financial, which directly weakens the basis for loans to generate economic benefits.
Endogenous factors of internal management of banks
(1) Decision error. Senior bank managers misjudged the borrower's current situation and market conditions, which led to the failure of major credit decisions and the formation of non-performing loans. (2) the quality of credit personnel. Some personnel are not of high quality, so it is difficult to make scientific decisions and effectively manage loans, and illegal lending occurs from time to time; In the implementation of credit policy, some credit officers are very arbitrary, and there is a phenomenon of "substitution of people". (3) The loan structure is unreasonable. Unbalanced loan portfolio structure, such as unreasonable loan investment leads to excessive concentration of loans, leading to the formation of non-performing loans. (4) Moral factors. In addition to certain business knowledge such as financial theory, enterprise financial management and legal system, credit personnel must also have honest character and strong sense of responsibility. Some loan officers are "out of place, out of place", with poor initiative, lack of pioneering and innovative spirit, and can't do their own jobs well. Even deliberate graft, violation of discipline, illegal crime, resulting in the formation of non-performing loans.
Bank non-performing loans are the biggest risk in China's financial industry. According to international standards, the warning line of non-performing assets ratio of financial institutions is 10%. The rate of non-performing loans in China is decreasing year by year, but non-performing loans still threaten financial security and stability. . How to solve the non-performing assets by reasonable collection method has always been the main problem to be solved urgently in the banking industry.
There should be a sound organizational management system.
The head office of the bank should have an examination and approval decision-making body to manage the risk loans of the whole bank, and a special functional department, such as asset insurance, to specifically manage and handle them; All branches and sub-branches have risk loan resolution teams to manage risk loans step by step.
It is necessary to strengthen the management of bad enterprises.
Enterprises with bad reputation are generally enterprises that can't repay the principal and interest normally. There are subjective and objective reasons for failure. Therefore, they should be classified and managed differently according to different reasons. The objective reasons are mainly the problems of capital turnover or poor management, which do not meet the requirements of national industrial policy and environmental protection, resulting in unsustainable operation and inability to repay; The subjective reason is mainly that enterprises use abnormal operations to deliberately reduce assets or increase liabilities, so as to achieve the purpose of not repaying loans or paying less. This deliberate evasion of debts must be strictly implemented in accordance with the relevant provisions of the People's Bank of China.
Protect assets through legal means
Litigation is more compulsory, and the legal rights of financial institutions are protected by state machines. Whether the loan can be successful through litigation depends mainly on the effectiveness of property preservation. Once the preservation is successful, the lawsuit can be terminated early through reconciliation and the loan can be fully recovered. When financial institutions solve risky loans through litigation, they should not ignore the provisions of judicial procedures while paying attention to the maintenance of their own substantive rights. As a result, due to the procedural delay, that is, the limitation of action, the substantive rights are lost. The limitation of action to apply to the people's court for protection of civil rights is 2 years, and it is 1 year under special circumstances.
Implement public bidding and auction.
Auction is the most notarized and fair way to maximize the value of assets. Through the auction, the bad assets were revitalized and the funds were recovered, which greatly reduced the risk of funds.
The government undertakes non-performing financial assets.
From the reasons for the formation of financial non-performing assets, there are factors of local government intervention, and bank loans support the development of enterprises and local economy. Therefore, both the debtor and the local government should bear the reasonable cost of the corresponding share in the process of redistribution of misplaced resources, regardless of the principle of benefit or the cause of loss. The disposal of non-performing assets is essentially to reconfigure the misplaced social resources formed in history, so as to make them play the greatest social utility as possible. However, it is obviously unreasonable for banks to bear all the losses caused by resource reallocation. The assumption of non-performing financial assets by the government is conducive to creating conditions for local economic development, improving local investment and financing and credit environment, and promoting the construction of social credit system.