An Empirical Analysis Of Cross - Regional Business Performance Of Urban Commercial Banks

As the financial industry develops rapidly and the competition becomes fiercer and fiercer in banking industry, the city commercial banks confined to one city produce more and more negative effects, such as the increasing system risk and difficulty to improve business performance. The city commercial banks’ cross-regional business gets extensive attention. It is important to study the relationship between cross-regional and LG, and the relationship between cross-regional and ROA on unique perspective of the city commercial banks business performance.Based on the predecessors’ research, I will do the qualitative analysis on how the city commercial banks realize cross-regional business and the cross-regional business status.On the basis of the above analysis, the paper chooses not only cross regional level of the city commercial as main explanatory variables, but also auxiliary variables such as AG,CAR, LTS, GDPG building LG model; and chooses auxiliary variables such as SIZE,CAR, GDPG building ROA model. And then this paper constructs double models using the latest available data from 2008 to 2013. Through regression analysis, on one hand, it shows that trans-regional management has no apparent effect on the LG, but it could promote other indexes to help LG in the LG model; on the other hand, what’s more important is that trans-regional management is vital for ROA in the ROA model. So it is important for city commercial banks to keep their market positioning, seize the opportunity and avoid some negative affects. The paper conclusion can provide empirical support for city commercial banks’ development strategy, and provide the theory basis and suggestions for regulatory policy.