Non-PerformingLoan (NPL), also referred to as abnormal loan or problem loan, refers to the loan in which the borrower fails to repay the principal and interest of the commercial bank loan on time according to the original loan agreement, or there are signs that the borrower cannot repay the principal and interest of the commercial bank loan on time according to the original loan agreement. China once defined non-performing loans as the sum of non-performing loans, sluggish loans and overdue loans (that is, "one loan exceeds two loans").

What is a non-performing loan? What is the dividing standard?

The classification method of bank non-performing loans is "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. However, "one excess and two retention" also has shortcomings, that is, it covers up many problems in the quality of bank loans. For example, checking the loan quality according to the maturity time of the loan 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.

To understand non-performing loans, we must first understand its definition:

Non-performing loans refer to loans in which the borrower fails to repay the principal and interest of commercial banks on time according to the original loan agreement, or there are signs that the borrower cannot repay the principal and interest of commercial banks on time according to the original loan agreement.

According to the types of non-performing loans, it is divided into the following three types:

1, overdue loan

Refers to overdue (including overdue) loans that cannot be repaid (excluding sluggish loans and bad loans).

2. Sluggish loans

Refers to loans that are overdue (including due after extension) for more than 2 years (including 2 years) and cannot be repaid. Although the loan is not due or overdue for less than 2 years, the incidence of non-performing loans has dropped to business stopped and projects stopped (excluding non-performing loans).

3. Bad debts

Refers to the loan that the borrower and guarantor fail to pay off after being declared bankrupt according to law; According to "General Principles of Civil Law of People's Republic of China (PRC)" and "General Principles of Civil Law", loans that cannot be paid off after the borrower dies or is declared missing or dead; Due to major natural disasters or accidents, the borrower is really unable to repay part or all of the loans with huge losses, or the loans that cannot be repaid after insurance settlement; The lender's proceeds from disposing the loan collateral according to law are not enough to offset the collateral; Loan projects approved for write-off by the State Council.

Generally speaking, if the borrower fails to repay the principal and interest within three months, the loan will be regarded as a non-performing loan. Therefore, I suggest that you try not to overdue the repayment, which will not only bear multiple interests, but also leave a stain on your credit record.

Non-performing loans include

Non-performing loans:

1, overdue loan

Refers to overdue (including overdue) loans that cannot be repaid (excluding sluggish loans and bad loans).

2. Sluggish loans

Refers to loans that are overdue (including due after extension) for more than 2 years (including 2 years) and cannot be repaid. Although the loan is not due or overdue for less than 2 years, the production and operation have stopped and the project has stopped construction (excluding non-performing loans).

3. Bad debts

Refers to the loan that the borrower and guarantor fail to pay off after being declared bankrupt according to law; According to "General Principles of Civil Law of People's Republic of China (PRC)" and "General Principles of Civil Law", loans that cannot be paid off after the borrower dies or is declared missing or dead; Due to major natural disasters or accidents, the borrower is really unable to repay part or all of the loans with huge losses, or the loans that cannot be repaid after insurance settlement; The lender's proceeds from disposing the loan collateral according to law are not enough to offset the collateral; Loan projects approved for write-off by the State Council.

Non-performing loans refer to overdue loans, sluggish loans and non-performing loans. Overdue loans refer to loans that cannot be repaid when the loan contract expires (including after the extension). Sluggish loans refer to loans that are overdue (including after extension) and have not been repaid, or loans that are not overdue or overdue but have terminated production and operation and stopped project construction; Non-performing loans are loans classified as non-performing loans according to relevant regulations. Non-performing loans indicate that banks will suffer risk losses. Minimizing non-performing loans is the primary goal of risk management of commercial banks.

cause

1. The weak credit awareness of some enterprises is related to the lack of strict and effective sanctions against enterprises and their responsible persons in China, and is also directly related to the low solvency of enterprises. There are many reasons for the low solvency of enterprises, both their own reasons and external reasons. For example, some enterprises or projects did not conduct a thorough feasibility study, or the conclusion of the feasibility study could not be reached, but some leaders made mistakes in decision-making; Poor enterprise management, low input-output ratio and poor operating efficiency; The social burden and other burdens of enterprises are heavy, and they undertake some policy functions, so that a large amount of funds borrowed by enterprises can be used for unproductive expenditures, and so on.

In fact, the debt burden of Chinese enterprises is already very heavy, and it is getting heavier and heavier. Many enterprises in China are not fully solvent, so it is impossible to pay off all the debts owed. In order to survive and develop, enterprises must try to increase the sources of funds and reduce the debt burden. In this case, it is inevitable for enterprises to default on bank loans and evade bank debts.

What are the three types of non-performing loans?

Secondary, suspicious, loss. Loans are divided into five categories: normal, concerned, secondary, doubtful and loss, three of which are non-performing loans.

Normal loan: refers to the borrower's ability to perform the contract and always repay the principal and interest normally. There are no unfavorable factors affecting the timely and full repayment of the loan principal and interest, and the bank is fully confident that the borrower will repay the loan principal and interest on time and in full.

Concerned about the loan: refers to the borrower's repayment, but there is some uncertainty, and the probability of loan loss will not exceed 5%.

Subgrade: It means that the borrower has obvious problems in repayment ability, and can't fully repay the loan principal and interest through normal operating income, so it needs to recover the arrears by other means, and the loan loss probability is 30%-50%.

Suspicious loan: refers to the borrower's failure to repay the loan principal and interest in full, and the probability of loan loss is between 50% and 75%.

Loan loss: refers to the borrower's inability to repay the loan. At this time, no matter what measures are taken, the loan loss will be caused, and the probability of loan loss is 75%- 100%.

Users should repay on time, and there can be no overdue repayment. After overdue repayment, it will be uploaded to the credit information center by the bank. When personal credit information deteriorates, it will affect the handling of various loans, such as car loans or mortgages. After the overdue arrears are returned, this record will be kept for 5 years and will disappear automatically after 5 years.

What is a non-performing loan?

Question 1: 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.

Question 2: What do you mean by non-performing loans? Non-performing loans also refer to abnormal loans or problem loans, which refer to loans where the borrower fails to repay the principal and interest of commercial banks on time as agreed in the original loan agreement, or there are signs that the borrower cannot repay the principal and interest of commercial banks on time as agreed in the original loan agreement.

Question 3: What do you mean by non-performing loans? After loans overdue, the bank thought that it might not be able to fully recover the loan, resulting in the loss of the bank's assets, and the loan would be considered as a non-performing loan.

Question 4: What are non-performing loans and assets? Non-performing loans are divided into five categories. Bank loans are divided into five categories: normal, secondary, concerned, suspicious and loss. Generally speaking, doubtful loans and loss loans are recognized as non-performing loans, and generally face losses of more than 50%. Of course, some banks with strict management now regard concern loans as bad.

Non-performing assets generally refer to the non-performing loan claims that banks divest to state-owned financial asset management companies (AMC) through policies or commercialization according to relevant national laws and policies. Because the parent bank has converted some creditor's rights into assets (such as debt repayment) in the management process, the non-performing creditor's rights managed in AMC are generally called non-performing assets.

Question 5: What are the non-performing loans?

Question 6: What does the scissors difference of non-performing loans mean? The criteria for determining the quality of loans have changed. Originally divided into four categories (normal, overdue, sluggish and non-performing loans, and the latter three categories are non-performing loans), it is now divided into five categories (normal, concerned, secondary, suspicious and loss, and the latter three categories are non-performing loans). The former mainly depends on loans overdue time, which is strict, but relatively focuses on post-judgment; The latter has more conditions, tracking its risk from the time of loan issuance, and adding more subjective judgments of banks. The difference between them is the so-called "scissors difference".

Theoretically, the same loan may be a non-performing loan under the four-level classification standard, but it is not a non-performing loan under the five-level classification, such as loans overdue 1 day (five-level classification concerns); Under the five-level classification, it may be non-performing loans, while under the four-level classification, it is still normal, such as the so-called "repayment ability problem". Therefore, in theory, this "scissors difference" is normal.

In practice, banks may interfere with the five-level classification manually out of the motive of concealing non-performing loans, that is, if the overdue time in loans overdue is "not long enough", the loan quality classification will not be reduced, and it has been counted as non-performing loans according to the four-level classification standard; At the same time, there may be signs that there are risks in the enterprise, but although the loan is not overdue (or overdue but the time is "not long enough"), the classification should be manually reduced according to the five-level classification standard, but it should also be specially adjusted. In this case, the amount of overdue loans (that is, the scope of "non-performing loans" under the four-level classification) will be much larger than that under the five-level classification, which is also a common "scissors difference" in practice.

At present, the prevailing loan quality classification is five grades, but the overdue loan situation is still a more concerned indicator. When the scissors gap is large, some non-performing loans may be hidden in the overdue loans of banks, which means that some risks have not been exposed, so it can be predicted that the balance and non-performing rate of non-performing loans of banks may rise sharply in the future. At the same time, the untrue loan quality may also indicate that banks may intentionally hide other potential risk points, which need vigilance and special attention.

Question 7: What do you mean by non-performing loans? Repayment of risky loans, non-performing loans also refer to abnormal loans or problem loans, which refer to loans in which the borrower fails to repay the principal and interest of commercial banks on time according to the original loan agreement, or there are signs that the borrower cannot repay the principal and interest of commercial banks on time according to the original loan agreement.

Question 8: What is a non-performing loan? Finally, using the method of drawing lessons from and comparing with foreign commercial banks' credit system, this paper puts forward some opinions and suggestions on the reform of credit management system of state-owned commercial banks. Non-performing loans refer to loans that have been defaulted. Generally speaking, if the borrower fails to repay the principal and interest within three months, the loan will be regarded as a non-performing loan. When banks determine that non-performing loans cannot be recovered, they should write off these loans from profits. When it is estimated that the loan cannot be recovered, but it has not yet been determined, the provision for bad debt losses shall be listed on the books. Research on the Countermeasures of Non-performing Loans of State-owned Commercial Banks and the Credit Management System; The characteristics and causes of assets are comprehensively expounded. Through the in-depth analysis of the characteristics of non-performing assets and credit system of ICBC before listing, it is expounded that establishing and perfecting the credit system is the main means and measures to control the growth of non-performing loans. Finally, using the method of drawing lessons from and comparing with foreign commercial banks' credit system, this paper puts forward some opinions and suggestions on the reform of credit management system of state-owned commercial banks. 1. Analysis of the current situation of non-performing loans in China's state-owned commercial banks 1. 1 The basic concept of non-performing loans in China's state-owned commercial banks refers to loans in which borrowers fail to repay the principal and interest of commercial banks on time according to the original loan agreement, or there are signs that borrowers cannot repay the principal and interest of commercial banks on time according to the original loan agreement. China once defined non-performing loans as the sum of non-performing loans, sluggish loans and overdue loans (that is, one loan exceeds two loans). Since 2002, China has fully implemented the five-level loan classification system, and classified bank credit assets into five categories according to the risk degree of loans: normal, concerned, secondary, suspicious and loss. Non-performing loans mainly refer to subprime, doubtful and loss-making loans. 1.2 estimation of non-performing loans of China Commercial Bank. State-owned commercial banks in China have indeed made a lot of efforts in reducing non-performing loans, such as trying to formulate a strict credit management system, completely procedural reform of credit business, and stipulating indicators for reducing non-performing loans. However, the non-performing assets of state-owned commercial banks are still seriously high, especially the four major state-owned banks. In 2004, the balance of non-performing loans of major commercial banks decreased by 394.6 billion yuan, or 4.56 percentage points, to 13.2%. This ratio has been far higher than the average level of the world banking industry, and the balance and proportion of non-performing loans in the banking system are still at a high level, which not only exceeds the requirements of the Basel Accord, but also falls far short of the requirement that the proportion of non-performing loans in international advanced banks should be kept below 5%.

Question 9: How to divide non-performing loans 1. Overdue loans.

Overdue loans refer to loans that cannot be repaid when the repayment period expires, excluding overdue loans and non-performing loans.

Second, the loan is stagnant.

Overdue loans refer to loans whose repayment period exceeds 2 years (including 2 years), or whose production and operation have stopped before the repayment date of loans expires. Excluding non-performing loans.

Third, bad debts.

Non-performing loans refer to loans that lenders and guarantors declare bankruptcy and fail to pay off after repayment; Loans that have not been paid off after the lender declares missing or dead; Loans that the lender is unable to repay after encountering major disasters and accidents; Loan projects approved for write-off by the State Council when the proceeds from clearing the lender's collateral and pledge are insufficient to pay off the loan.

Question 10: What does non-performing loan abs mean? After loans overdue, the bank thought that it was very likely that the loan could not be fully recovered, resulting in the loss of bank assets, and confirmed the loan as a non-performing loan.

Classification of non-performing loans

Five types of non-performing loans: subprime loans, doubtful loans and loss loans. Grade 4 non-performing loans can also be divided into overdue, sluggish and bad debts. The four-level classification of non-performing loans is not comprehensive, which can not meet the needs of refined risk management and supervision of commercial banks and regulatory authorities.

1988 The Interim Provisions on Establishing the Reserve for Non-performing Loans of National Specialized Banks issued by the Ministry of Finance defines four situations of non-performing loans: first, the borrower goes bankrupt according to law; Second, the borrower dies; Third, the borrower suffered a major disaster; Fourth, the State Council approved the write-off of loan projects.

1998, the People's Bank of China formulated the Guiding Principles for Loan Risk Classification (for Trial Implementation), requiring commercial banks to classify loan quality according to the actual repayment ability of borrowers, and classify loans into five categories based on risk, namely normal, concerned, secondary, doubtful and loss, of which the latter three categories are collectively referred to as non-performing loans.

On June 2002, 65438+1 October1,Chinese banks fully implemented the Guiding Principles of Loan Risk Classification. After the establishment of the CBRC, it continued to use the five-level classification method determined by the People's Bank of China, and further strengthened its implementation, taking accurate loan classification as one of the foundations of banking supervision.

Due to the new problems in the supervision practice and some shortcomings of the original system, the CBRC issued the Guidelines for the Classification of Loan Risks in 2007.