All About Loan Refinanc You Should Know(6)
(4) The best time may cause banks to lose their loans. Since most of the loans made by banks are secured loans, banks can recover loans by requiring the guarantor to meet the guarantee dispensing or dispose of the collateral in the event of a borrower's problems with the first source of repayment. And loan refinance extends the term of the original loan, increasing uncertainty about the borrower, guarantor's business or the value of the collateral. When loan refinance is unsustainable, the non-performing loan is immediately exposed, but at this point it may result in the bank losing the best time to clear the loan.
(5) The behavior of the borrower's non-compliance with his promise has played a role in promoting the construction of the social credit environment. Loan due and not on time to return and the implementation of loan refinance, to a certain extent, weakens the borrower's subjective awareness of commercial bank debt, resulting in the dilution of corporate credit concept, crowding out the misappropriation of credit funds serious, not only to the bank credit assets to form a potential risk, but also the construction of the overall credit environment of society is extremely unfavorable
Second, loan refinance loan saued ingested reasons analysis
(i) Lack of regulated loan refinance access regulations and operational basis. The regulatory authorities have not made clear limits and operating norms for commercial banks to handle loans, but only set out four conditions in which loans can be considered as normal loans in the Interim Measures for the Identification of Non-performing Loans. In the operation of the grass-roots banking, the four conditions are generally regarded as the condition for the processing of loan refinance, in fact, there are many disadvantages: First, one of the four conditions "re-processed the loan procedures" is in fact nothing;
(2) There are defects in the performance appraisal mechanism. In recent years, banks at all levels generally take loan quality as an important indicator of business results assessment, but in the design of assessment indicators, over-emphasis on the number of non-performing loans on the "double-down", and the authenticity of the loan risk classification assessment is not strong enough, so that the assessee in order to complete the assessment task, do everything possible to maintain the risk loan surface of the normal, cover the true quality of assets. Some grass-roots branch offices in the course of operation stipulated that "non-performing loans in whose hands, then who is responsible, until the loan is recovered", this does not consider the real reasons for the formation of non-performing loans and the process of mechanical assessment system, to a large extent to discourage the enthusiasm of credit officers, but also induce the incentive of credit personnel to use loan refinance loans to conceal non-performing loans
(3) A scientific credit culture has not yet been formed. First, the misunderstanding of ideological understanding. On the one hand, commercial banks to individual competitive customer loans to implement the active loan refinance, think that good customer loans low risk, high income, worried that once can not meet the customer's loan requirements of loans, resulting in the loss of good customers, actively reduce the credit management requirements for good customers, the loan maturity of loans implemented loans loans. On the other hand, it is shown that some banks are not aware of risk, the loan loan loan refinance risk is not enough, especially in the economically underdeveloped areas, due to the limitations of the regional economy, the customer resources are relatively scarce x, there is no new credit target, in order to maintain the existing credit scale, the loan of the customer who should have exited has been implemented loan loans. Second, extensive management. The main performance is unreasonable loan term setting, loan repayment time and enterprise withdrawal time mismatch, after-loan management is not in place, relax the timely collection of loans due, the customer cash account supervision is weak, loan repayment funds loss and other reasons caused by the bank to the maturity of loans passive loan refinance.
