Study On The Evaluation System Of Small And Medium-sized Banks’ Trans-regional Management

Small and medium sized banks are an indispensable part of China’s banking system, and they also play an important role in our multi-level and comprehensive financial system in China. Small and medium sized banks include China’s urban commercial banks, part of the joint-stock banks and rural credit cooperatives and so on. The development of small and medium-sized enterprises often need funds,but the strength of them is not so strong, They have the risk of not lending back money. As the various credit guarantee,the banks are unable to give small and medium enterprises loans, thus resulting in a vicious cycle of enterprise development, and small and medium-sized banks in the loan amount is not so complex as large bank. so the Small and medium sized banks can better serve small and medium enterprises and promote the development of the local economy.With the gradual liberalization of financial control, as well as the good development of small and medium banks, small and medium banks gradually get rid of regional restrictions, began to cross regional business.There are many kinds of development strategies of banks.But we can find the business path of banks is always that they first seek market within the province,then beyond the province,last all over the word.Large state-owned banks and joint-equity banks have accomplished the nationwide coverage.but for some small joint-stock banks and city commercial banks is not to achieve nationwide business.Small joint-stock banks and city commercial banks are facing pressures from large banks such as state-owned banks, joint-stock banks and foreign banks.for small banks,they should break though geographical restrictions and continue to develop the market so as to remain invincible in the competition.To maximize profits forsmall and medium sized banks,the first step for small banks is to do cross regional operation. However, the inter regional development of small and medium-sized banks have some problems.In a certain extent, there is a certain degree of blindness. When selecting the target area, they are always not fully considered. When achevening the cross regional business, they should not only consider how much profit it will bring to the bank in the futures, but also to fully consider the existence of potential risks in the future market,, so when choose the target market,the Small and medium sized banks should fully weigh the profits and risks. Our country contains 23 provinces,5 autonomous regions,4 municipalities and 2 Special Administrative regions.Each region palys different roles in the the development of the bank’s.what’s more,the favorable conditions of each region vary from each other.When selecting the target area, the bank should weigh the advantages and disadvantages of them.it should be the most suitable target area.Therefore, this paper selects 31 provinces and municipalities and use principal component analysis method.It select 13 indicators to analyze the 31 markets to rank them.The goal of this paper is to provide China’s banking industry with a a reference of achievening cross regional operation.