Judicial litigation is of great significance to the disposal of non-performing loans.

According to the "Civil Procedure Law of the People's Republic of China" and the "Bank Supervision and Administration Law of the People's Republic of China", banks can solve the problem of non-performing loans through judicial litigation. First, judicial proceedings can enforce the borrower's repayment obligations and protect the bank's legitimate rights and interests. Secondly, judicial litigation can recover bad loans and reduce bank losses through court judgments or rulings. In addition, judicial proceedings can also act as a deterrent and serve as a warning to other borrowers, prompting them to fulfill their repayment obligations and reduce the occurrence of non-performing loans. Therefore, judicial litigation is of great significance to the disposal of non-performing loans.