Research On The Evaluation Of City Commercial Banks’ Cross Region Risks

City commercial bank has become an important part of China’s banking industry through itself continuous development since its establishment.As the third echelon of Banks,city commercial banks not only provide service and financial support to small enterprises,but also promote the local economic development.Since 2006,measures for the management of the China Banking Regulatory Commission issued allowed city commercial banks to operate across regions,meanwhile city commercial banks began their cross-region management in order to improve competitiveness.Since then,city commercial banks which have been operated across region are growing rapidly.At present,more than 70% of city commercial banks have achieve cross-region business in 145 city commercial banks.Although City commercial banks’ cross-region bring benefits,at the same time,also bring all kinds of risk issues.The various exposed problems and risks will hinder city commercial banks interregional expansion.Therefore,we need to study city commercial banks’ cross-region risk and to take some measures to control risks.The article regard city commercial banks’ cross region risks as the research object and build assessment index system on the basis of situation and risks of the cross-region operation of city commercial banks.We will analyze fifteen city commercial banks from 2010 to 2014 through factor analysis empirically.According to the results,the article put forward some measures to prevent and control risks.The article research the issue mainly through five parts.The third part,forth part and fifth part are Core part.Firstly,the article generalize the theoretical basis of city commercial banks’ cross-region business from several aspects which including the development of city commercial banks,cross-region operating model,the theory of city commercial banks’ cross-region,the commercial banks operating risk and risk evaluation methods.The second part is analysis of city commercial banks’ cross-region operation risks.In this part,the article introduce the present situation of city commercial banks cross-region business firstly.Then compare the city commercial banks with large commercial banks on cross-region risk and analyze the credit risk,capital risk,operation risk,liquidity risk and profitability risk qualitatively.The third part is the construction of city commercial banks’ regional management risk assessment model.In this section is mainly aimed at building the risk evaluation index system through selecting 15 suitable indicators which conclude non-performing loan ratio,provision coverage and capital adequacy ratio and so on and building risk evaluation model of city commercial banks’ cross-region risks using factor analysis.The forth part is empirical analysis of city commercial banks’ cross-region operation.In this part mainly using the model to analysis empirically based on the fifteen city commercial banks’ data from 2010 to 2014 and evaluating according to the results.Finally,put forward some countermeasures to improve risks of city commercial banks’ cross-region according to the results.Respectively from the internal control mechanism,comprehensive risk management,the market position,financial innovation and the talents’ construction to analyze.According to the empirical research,conclude that the small and medium-sized city commercial banks’ cross-region risk is higher than big city commercial banks,especially credit risk and capital risk.So we should strengthen the management of small and medium-sized city commercial banks’ cross-region risks.