An Empirical Study Of The Scale Expansion Of City Commercial Banks And Performance

Finance is the core of modern economy, commercial Banks are the backbone of the financial markets, and city commercial Banks in the rapid development of China’s economy play a particularly important role. The birth of city commercial bank is mainly in order to solve the urban individual industrial and commercial enterprises "difficult to open an account, settlement, it is difficult to deposit, loan difficult" realistic problem. Its special function determines the city commercial Banks in China’s economic development process of importance. With the rapid development of the banking industry in recent years, city commercial Banks all over the service object by gradually based on local like nationwide expansion joint stock commercial Banks, and the rapid development of foreign Banks in recent years and the pouring into the competition of the banking is increased. In this situation, city commercial Banks in China expansion speed whether reasonable, the scale expansion and performance between the relevant relations, how the expansion which exist in the process of problem, how to grasp the scale of the city commercial Banks in China expansion process will become the main research problems.This study first as a starting point from the general theory of meaning, relationship of scale expansion and performance and the are the most basic states, analyze and compare the applicability of various empirical through analysis method, considering the particularity of the object of study in this study, determined by the translog cost function method as the mathematical the methods of research, to the Bank of Jilin, Bank of Beijing, Bank of Dalian, Yantai bank, Luoyang bank, Nanjing bank, the Bank of Taizhou, Bank of Chengdu, Dongguan bank in recent years the rapid expansion of the scale of city commercial banks as the sample, sorted through the relevant data to data during2006-2011sample city commercial banks to provide annual report and the financial statistical yearbook, the analysis with the related mathematical model, use translog cost function analysis of the relationship between the law of city commercial banks scale expansion and performance improvement of the empirical study, found that China’s city commercial banks scale expansion is conducive to performance improvement in the current situation, but a simple scale expansion in at the same time, improved performance may bring the may also increase the risk of the bank, so the Study on the expansion of the scale of China’s city commercial banks in the analysis of historical data and the results of empirical research, and then according to the results of empirical analysis, combined with the impact of factors of China’s city commercial banks and city commercial banks are financial environment, to our country city firm scale expansion and rapid development put forward in a certain range to promote the city commercial bank mergers and acquisitions, to accelerate the construction of informationization, financial innovation and City Commercial Bank of city commercial banks moderately relax market access and the introduction of strategic investors should. Believe that in the face of great opportunities and challenges of Chinese city commercial banks to expand the scale of operation, has important theoretical and practical significance to improve the e conomic benefit.