The Research Of City Commercial Banks’ Transregional Operation Of China

With the opening of our banking and financial reform，the drawbacks of One CityOperation mechanism of city commercial banks（the abbreviation for CCBs）have beendemonstrated under the pressure of the state-owned commercial banks, nation-widecommercial banks and foreign banks. If the urban credit union’s reform andrestructuring is the CCBs’s first revolution, then the CCBs transregional operation isundoubtedly the second revolution. The thesis, centering on the theme of CCBstransregional operation， analyses CCBs’s transregional operation by applying theindustry structure theory,the scale economy theory，the principal-agent theory, thetransaction costs theory and the theory of comparative advantage，then analyses theeffects of CCBs’s transregional operation，and finally makes related advices for thesupervision department and CCBs on the basis of empirical results.The first chapter summarizes the research on the transregional operation ofcommercial banks home and abroad. The second chapter analyses CCBs’s transregionaloperation from macroscopic and microcosmic perspectives. The national industrystructure, market positioning and comparative advantages of CCBs do not support theCCBs’s transregional operation but the scale economy and the transaction costs theory.The third chapter analyses the present situation and the effects of the CCBs’stransregional operation. The fourth chapter begins with an empirical analysis based onpanel data of10CCBs from2005to2010. Then, the paper comes to some conclusions:large CCBs suit for the transregional operation except medium-sized and small ones.Finally，the fifth chapter puts forward some suggestions on the basis of theoretical andempirical analysis. The CCBs should not blindly prompt transregional operationbecause it’s hard for them to obtain the so-called good.