1, half of the deterioration of non-performing loans is caused by the change of loan balance, and the reduction of non-performing loan balance will reduce the non-performing loan ratio.

2. Under the condition that the balance of non-performing loans remains unchanged, the increase of loan balance will also reduce the non-performing loan ratio.

3. When the loan increment is greater than the non-performing loan increment or the loan decrement is less than the non-performing loan decrement, the non-performing loan ratio will decrease.