What is a Non-Conforming Loan?

Non-performing loans are a general term for overdue loans, sluggish loans and bad loans. Overdue loans refer to loans that have expired in the loan contract (including due after the rollover) and have not been repaid. Dull loans are loans that are overdue (including due after the rollover) that have not been repaid for more than a specified period of time, or have not expired or are not overdue. Years but production and operation have been terminated, the project has been suspended construction loans; bad debt loans are loans classified as bad debt according to relevant regulations. Non-performing loans herald a risk loss for banks. Minimizing non-performing loans is the primary goal of commercial banks' risk management. ^[1]

Bad debt

Non-performing loans are a general term for overdue loans, sluggish loans and bad loans. Overdue loans refer to loans that have expired in the loan contract (including due after the rollover) and have not been repaid. Dull loans are loans that are overdue (including due after the rollover) that have not been repaid for more than a specified period of time, or have not expired or are not overdue. Years but production and operation have been terminated, the project has been suspended construction loans; bad debt loans are loans classified as bad debt according to relevant regulations. Non-performing loans herald a risk loss for banks. Minimizing non-performing loans is the primary goal of commercial banks' risk management. ^[1]

Non-performing loans

Continued to be adversely affected by the macroeconomic situation at home and abroad, the domestic banking industry faced a phased rise in non-performing loans in 2013

In January 2019, the Audit Commission released the results of the audit of the implementation of major national policies and measures in the third quarter of 2018. The audit results show that there are individual financial institutions in five provinces covering 1.339 billion yuan of non-performing loans through artificial adjustment of asset ratings. The individual banking institutions involved in the five provinces are Anhui Rural Commercial Bank, Heilongjiang Rural Credit Cooperative Union, Jiangxi Ganzhou Bank Head Office and 27 branches, Tonghua Rural Commercial Bank of Jilin Province, and Ziyang Rural Commercial Bank of Sichuan Province. The amounts involved were 467 million yuan, 329 million yuan, 237 million yuan, 138 million yuan, and 168 million yuan. ^[2]