Causes and Solutions of Npl in China

The economic factors are external and out of the company’s control, meaning the company must do everything they are capable of doing in order to attempt at maintaining a high credit

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

Furthermore, outdated technology would impact the facilities ability to prevent cyber-attacks, compete with competitors, provide superior customer service, and maintain workplace efficiency. Additionally, events influencing the economic and political environment could impact financial stability for the organizations. External environmental hazards include extreme weather conditions that affect customer and employee safety. In addition, factors within ABC Community Banks internal environment include communications channels, as well as, the facilities culture. Communication channels impact the institutions policies, procedures and trainings, which when inadequate may cause work place errors. Moreover, assessing the culture will determine the general attitude and viewpoints of employees (Elliott, 2012). In scanning the environment of ABC Community Bank, the organizations can identify areas of weakness and adapt, in order to maintain tolerable uncertainty, while increasing business continuity and ultimately survival. Therefore, ABC Community Banks internal and external analysis will provide the groundwork for creating a risk management program that aligns with the organizations goals and risk aptitude.

In addition to the above the internal incentive to bank should be reduced by requiring greater capital requirements as well as improving upon the definition of what qualifies to be capital. Further in line with the answer to question 3, risk management systems in financial institutions need to be redefined and strengthened to more comprehensively identify, evaluate, manage and monitor risks.

RBC engages a strong risk culture, with an understanding of risk awareness and responsibility. They use several methods to manage and alleviate their vulnerability to different types of risk. This bank’s risk-management process includes in-depth risk measurement, risk control, and risk governance, with setting the right risk culture at the top with their Board of Directors through their “Three Lines of Defence Model ,” (See Exhibit 4).

•Insufficient policy review and approval processes could lead to publishing availability policy and applying business practices inconsistent with Regulation CC

Before entering another business sector, SCF needed to contemplate the business area and adjust their operational technique to the nearby needs. Every nation had diverse ways to deal with managing an account. Santander Consumer Finance confronts diverse classes of risks inside of every homeland it ventures. Furthermore, the difficulties are distinctive relying upon the nation as a result of the principles and regulations that every nation enforces in their financial and banking scheme. They confront a considerable measure of social dangers because of the way that each nation has their own particular custom and method for doing things. However, they need to ensure they research and study the nation well before they put resources into it with a specific end goal to make the privilege operational methodologies and enter the nation adequately in a way that matches the nation's method for working

A Bank is a financial intermediary that acts as an economic firm producing goods and services. With this view in mind it’s easy to see that a bank exists to make a profit. In order for a bank to be successful and make a profit, it has to take risk. A bank that is averse to risk will be a stagnant institution unable to adequately serve its customers effectively and produce a profit. However, a banking institution that takes excessive or unnecessary risk is also likely to run into trouble. All risk is uncertain but with bounds the probability of an outcome can be predicted using expectation. A bank can also run into trouble if it decides to take a

Non-performing loans- The Communist system of awarding loans to state owned enterprises, whether they are profitable or not, has lasted until the present day and has saddled these banks with an unwieldy percentage of

The board presented a set of problems, what we should solve, the most concerning are the lack of loyalty among the employees and the lack of honesty of the Bank towards its environment. We used two diagnostic approaches to reach the core of the problems Bank X faces, the Onion model invented by Hofstede, which help us to understand the different layers of the culture in the bank and the Behaviour approach model, which aims to present a clear summary of the behaviour of your colleagues. The diagnosed core issue, the outcome of the analysis, is related to the organizational culture of Bank X. This connection ultimately leads to the question: How can the management of Bank X overcome these cultural oracles concerning their lack of loyalty, which mainly results because of the high fluctuation, the high risk-taking of the employees and their self-interest and on the other hand, the lack of honesty?

However, this method does not directly address the massive and rising amount of non-performing loans in the banking sector. In conclusion, Enhanced Debt Management can only provide an alternative to eliminate the ongoing and expensive destruction of market value and the potential output deadweight loss. This method is cheaper than the Troika’s method (Werner,

These unpleasant incidents, like overcharging influenced the relationship between the bank and the customer. The actions that the customers

Risk Management: Without understanding customer profile and background, bank fails to assess risk/benefit of offering product/service to customers. This leads to non-performing assets without proper recovery plan.

List of abbreviations List of tables Acknowledgements Abstract 1. 2. 3. 4. 5. 6. 7. 8. Introduction Problem statement Objectives and hypothesis of the study Literature review Structure and performance of the financial sector in

Banks’ ability to promote growth and development depends on the extent to which financial transactions are conducted with trust and less risk. If the foundation on which a bank(s) are built lack institutional, government and above all public confidence, such a bank may collapse. So therefore, it is essential that every single bank must have an internal control system were the internal audit department makes sure that their accounting principles provide an effective means of recording and reporting monetary transactions, providing organisation information and securing the company’s asset from fraud and misappropriation (Achibong, 1993).