Title: Causes and Countermeasures of Non-performing Loans of Commercial Banks in China.

Going upstairs is mainly about countermeasures, so I'll talk about the reasons.

The first reason is that the bank loan approval process is imperfect and full of loopholes. In other words, the bank's lending system is opaque and there is no mutual restriction and review.

Second, the post supervision and audit of some banks are not in place, and the internal management is paternalistic, with a system of top leaders, and everything is subordinate to the top leaders. Afterwards, the audit supervision of internal audit institutions became a decoration.

Third, historical reasons: during the planned economy period. The function of policy banks has not been completely weakened, and historically, policy loans have been accumulated at the expense of normal lending procedures in response to policies.

Fourth, the collapse and reorganization of state-owned enterprises. In the past, banks supported large state-owned enterprises. Due to the complex management of state-owned enterprises, it is impossible to clearly understand the financial situation, and the black-box operation in the privatization of state-owned enterprises, banks can not recover loans after the loss of assets.

Fifth, obey the local government. Out of the motive of being responsible for the local economy, local governments do everything possible to intervene in the operation and management of enterprises, intervene in the lending behavior of banks and support their local development. In this process, due to the pressure of banks, some pre-examination and supervision of loan enterprises were abandoned, resulting in non-performing loans.

Sixth, the bank's ability to develop new business and profitability are insufficient. Traditional banking business has been unable to support the follow-up and sustainable development of banks, but China still lacks senior financial talents, and the innovative development of banking business is facing great challenges.