The Empirical Analysis Of The Impact Of Cross-Region Operation On The Efficiency Of China’s City Commercial Bai·ks

As "the third echelon" of Chinese banking industry, city commercial banks mainly positioned itself as the small and medium-sized bank with local features which served for the local enterprises and local residents and supported the local economic development at the beginning of its foundation. Since the release of regulation in2006after Bank of Shanghai established the first branch in Ningbo, the cross-regional operation of city commercial banks has sprang up. Especially in recent years, every city commercial bank encircles the ground in the horse race, then the expansion speed of cross-regional operation is faster and faster and the trans-regional degree is larger and larger along with some problems. For example, some branches of the bank can not make up the deficits and get surpluses, the internal risk of the bank is increasingly accumulated, etc. Coupled with the challenge of external economic environment towards banking operation, city commercial banks should cautiously handle the choice of cross-regional operation. How will the cross-regional operation influence the efficiency of city commercial banks has practical significance in promoting the city commercial banks’ whole competitiveness and their sustainable development.Concentrating on the cross-regional operation of city commercial bank and using methods combining theoretical analysis with empirical test, this article analyzes the problems that city commercial banks encounter in development and trans-region, issues such as the cause of trans-regional development and the influence of trans-region on the city commercial banks’efficiency and finally proposes relevant suggestions on the prospective management of city commercial banks.Chapter one of the article firstly systemizes and summarizes the literature of banking cross-regional operation at home and abroad. By the status analysis of domestic city commercial banks’ development, analysis of the trans-regional causes and challenges that trans-region suffers, chapter two introduces the general situation of domestic city commercial banks’ cross-regional operation and preliminarily proposes the doubt on the fact that city commercial banks still persist in cross-regional operation in current status. Chapter three introduces theories about the cross-regional operation of city commercial banks and selectively analyzes the influence of cross-regional operation, geographical distance and branch distributed strategy on city commercial banks’efficiency from theoretical aspects. As the foundation of empirical test, chapter four introduces DEA data envelopment analysis model and uses the model to estimate the super efficiency value of sample banks as the explained variables of the empirical test. On the basis of the previous two chapters, chapter five studies the influence of cross-regional operation on city commercial banks’efficiency applying multiple regression method and the result shows that the trans-regional degree of city commercial banks is negatively correlated with its efficiency. According to the result of the last chapter, chapter six proposes certain policy suggestions for city commercial banks in terms of cross-regional operation of city commercial banks.