Four level loan classification:

     A, normal

     Two, overdue. One that fails to return loan contract expires.

     Three, dull. Overdue for more than one year period has not yet returned to the loan.

   Four, bad debts. Bad loans that can not recover the loans.

Five level loan classification:

    A, normal: borrowers are able to perform the contract, there is no sufficient reason to doubt the principal and interest of the loan cannot be repaid in full and on time.
   Two, pay attention toAlthough at present: borrowers ability to repay the loan principal and interest, but some may have an adverse effect on the repayment of factors.
     Three, secondary: the borrower's repayment ability obvious problems, completely rely on their normal business income is unable to repay the principal and interest of loans in full, even if the collateral, may also cause some loss of.
   Four, suspicious: the borrower cannot repay the loan in full, even if the collateral, certainly will cause a greater loss.
    Five, loss: after taking all possible measures and all the necessary legal procedures, still unable to recover the principal and interest, or only a small portion can be recovered.

     The five class classification is the bank is mainly based on the borrower's repayment ability, practical ability is eventually to repay the loan principal and interest of the loan risk, determine the degree of loss, after the three class called non-performing loans.

   The five category is the international financial industry accepted standards of bank loan quality, this method is based on dynamic monitoring, through continuous monitoring and analysis of the borrower's cash flow, financial strength, the value of the collateral and other factors, the actual loss to judge the degree of loan. That is to say, the five level classification is no longer based on the loan period to judge the quality of loans, can more accurately reflect the real situation of non-performing loans, so as to improve the ability of banks to withstand risks.

   The four category is afterwards supervision and management method according to the duration of the loan. "A more than two stay" is to cover up a lot of problems in the quality of bank loans, such as loans due time to check the quality of loans, will lead to borrow new also old phenomenon, so it is easy to be a bad loans into normal loans, but in fact did not reduce the risk. This classification method is difficult or even impossible to achieve the purpose of improving the quality of credit assets, and the five grade classification is to overcome the weakness of it, can reflect the commercial bank's profit and loss status, thus become the method of quality management improvement loan options.