Analysis of non-performing loans risk of five Chinese state-owned commercial banks

With the continuous development of Chinese banking industry, the influence of banking industry on Chinese economy has also become greater. The non-performing loan ratio of a bank is often regarded as one of the important operating indicators of the bank, which can measure the ability of banks to resist risks. At the same time, as representatives of Chinese commercial banks, state-owned commercial banks often have strong capital and strong ability of defending risk. After the outbreak of the coronavirus pandemic, there is a high probability that the non-performing loan rate will rise sharply in a short period of time. Therefore, studying the influencing factors of the non-performing loan rate of Chinese state-owned commercial banks has certain theoretical and practical significance for preventing the risk of rising non-performing loans of Chinese commercial banks and controlling financial risks. This article firstly introduces the literature and theory of non-performing loan rate, and then analyses the existing problems of Chinese non-performing loan rate in the process of economic development. Then five economic variables are selected as influencing factors by establishing models. The final results show that the growth rate of GDP show a negative correlation with non-performing loan ratio and the growth rate of unemployment is negatively related with non-performing loan ratio. While net assets have a positive correlation with non-performing loan ratio. The capital adequacy ratio and non-performing loan ratio show a negative correlation, whereas cost-to-income ratio and non-performing loan ratio presents a positive correlation. Finally, on the basis of theoretical analysis and empirical analysis, targeted suggestions are put forward from both macroeconomic and bank management aspects to achieve the goal of controlling the risk of non-performing loan rate of Chinese state-owned commercial banks