The Research Of China City Commercial Bank's Scale Economics And Scope Economics

Since the first city commercial bank was established in Shenzhen in1995, city commercial banks have gone through ten years of ups and downs. After experiencing the difficult start from1995 to 2002, and solve the risks, as the same time enough capital was obtained from2003 to 2006.Now the city commercial banks have entered a critical period of development. However, because the body of city commercial banks were born out of the city's urban commercial bank credit, difficulties were full of the road of development, due to low starting point, the historical burden of heavy, uneven quality of personnel.This paper reviews the status of domestic and international researches and analyses the methods of studying economies of scale and scope economies in the past. From reality, considering the own characteristics of city commercial banks and the availability of data, this article decided to use transom profit functions to study and analyze scale economies and scope economies.Our conclusion is: For the large city commercial banks in the sample , there is a good beginning of the scale economies and scope economies , but as time goes by, scale economies and scope economies effect tends to decrease. For medium-sized city commercial banks in the sample , during its first scale economies increased and then showed a downward trend. At the last period it showed a slight diseconomies of scale; its scope economies in the sample period showed a clear upward trend, and at the last of sample period it appeared a little range of scope economies. Small and medium sized city commercial banks, there are not scale economies and scope economies effects at the beginning of the sample , but they showed a significant upward trend during the sample period, especially the scale economies, at the last of sample period it achieved slight scale economies.Finally, on the basis of evidence, combined with different sizes and different features of different city commercial banks , following recommendations are given :the first, identify the location, the second, clear development goals; specific recommendations to improve scale economies for different sizes of city commercial banks ; develop intermediary business and so on.