The Study Of The Impact Of Cross-Region Operation On The Operating Performance Of City Commercial Banks

City commercial bank is an important element of Chinese banking.City commercial banks facing the contradiction between servicing regional economy and regional expansion with their overwhelming development.There are many controversies for the issue of city commercial banks’ cross-region operation due to the special industry status of city commercial banks,cross-region operation policy for city commercial banks also has experienced the period from being relaxed in year of 2006 to the readjustment in year of 2011.Most of city commercial banks actualized the cross-region operation after the policy was relaxed.On the one hand,the city commercial banks gradually expand their business scope,enhance their operating performance and improve the competition of the financial market.On the other hand,there are some city commercial banks exposing to some serious management issues in the process of cross-region operation and that their operating performance.Therefore,it is of great practical significance to study how the cross-region operation affect city commercial banks’ operating performance,whether it is beneficial to the city commercial banks’ operating performance.This paper selects 30 city commercial banks as the research sample.regarding commercial banks’ management principles as the evaluation principles for city commercial banks’operating performance,then using the factor analysis as the evaluation model to estimate comprehensive operating performance score of city commercial banks in the year of 2009 to 2014.Results showed that city commercial banks’ comprehensive operating performance score generally increased first and then declined.On the basis of the fourth chapter, this paper regard city commercial banks’ comprehensive operating performance score as the dependent variable,takes the factors estimated cross-region operation as the variable,and takes factors of banks’ assets and equity as control variables,using the fixed effect model with Driscoll-Kraay standard error to modify and make the regression for the panel data. The final results show that taking importance in cross-region operation significantly hurt operating performance of city commercial banks.Therefore,city commercial banks should regard the local as their major market and develop cross-region operation properly.At the same time,this study find that setting branch in the regions which has a large GDP and the regions which has a shorter distance to the local contributes to a higher operating performance of city commercial banks.Expanding the regions where they engage in simply can not significantly improve operating performance of city commercial banks.To increase the size of total assets,optimize the assets-liability structure also has important significance to improve the operating performance of city commercial banks.