Non-performing loans refer to the state that banks or other financial institutions have determined that loans have become non-performing loans because borrowers have defaulted on the principal and interest of loans for a long time. At this time, the bank can't recover the arrears from the borrower, and then the loan is included in the non-performing assets. Because non-performing loans can not be recovered, it has a great impact on the bank's capital and credit contribution, which is a common risk.

Non-performing loans are not only the risk of banks, but also the risk of the whole society. Once the bank loan forms bad debts, it means that the funds cannot be effectively put into production, investment and consumption, which has a negative impact on economic development. Therefore, while controlling non-performing loans, banks also need the cooperation of all sectors of society to reduce the scale of non-performing loans, thus maintaining social and economic stability and development.

Non-performing loans are a complex social problem, which requires not only the professional ability and technical means of financial institutions, but also the consciousness and integrity of borrowers. For financial institutions, it is necessary to improve the early warning ability of loan risks, strengthen post-loan supervision and improve the risk sharing mechanism. For the borrower, it is necessary to consciously perform the contract, raise the awareness of repayment and maintain a good credit record. Only through cooperation between the two sides can we jointly solve the problem of non-performing loans and create a stable and orderly environment for financial and socio-economic development.