Research on Influencing Factors of Non-Performing Loan Ratio of China Construction Bank Based on LASSO Algorithm

Abstract

Systematic and effective analysis and control of the non-performing loan ratio can promote the steady development of the Bank, improve the non-performing loan prevention mechanism, enhance the Bank's risk prevention and control capabilities, and maintain the order of the financial market. This paper takes China Construction Bank as the research object, collects the relevant data such as the annual reports from 2004 to 2022, selects variables based on the LASSO algorithm, and constructs a multiple regression model. According to the research results, the provision coverage rate and the degree of government economic intervention have a negative correlation with the non-performing loan ratio of CCB, the loan-to-deposit ratio has a positive correlation with the non-performing loan ratio, and the capital adequacy ratio, GDP growth rate and business climate index have no significant impact on the non-performing loan ratio.