Empirical Analysis Of Performance And Risk Of The City Commercial Banks’ Geographic Diversification

In this collection of geographic diversification data of city commercial banks from2006to2012, through regression analysis, the paper does the empirical studies about the performance and risk of city commercial banks operating across the region. The results find that the city commercial banks’ geographic diversification can increase the banks’operating performance and reduce the bank’s risk level. The text conclusion can provide empirical support for the development strategy of city commercial banks, and provides the theory basis and suggestions for regulatory policy.The innovation of this paper is to collect more comprehensive sample and build a new cross regional business index, which fits City Commercial Bank cross regional level and undertakes an empirical research more accurate. Through the study of political and geographical factors in cross regional business on bank performance and risk influence, the paper does a better analysis of the function of government and the region culture. Through the research of the history of American state banks’ geographic diversification and the analysis of the characteristics of state banks’ geographic diversification, the reference and enlightenment for cross regional operation of city commercial banks can be given.