The Correlation Research On Size And Risk Of China’s Commercial Bank

Since the21st century, our country commercial bank not only has made great achievements, but also its status in the international arena gradually increased, especially after the financial crisis of2008it has become an important object of global academic and financial circle. At present, in the global wave of bank mergers and acquisitions expansion has become the main trend in the development of commercial Banks in China, but at the same time of expansion new problems will be inevitably produced that intensified the formation of the bank’s risk, this is not allow to be ignored. In order to continue to maintain the healthy and sustainable development of financial markets in our country, it is necessary to combine bank’s scale and risk to research our country commercial banks. Only in this way can truly reflect the status development of our country commercial bank and provide valuable help and policy suggestions for the stable development of China’s commercial Banks.This article firstly summaries related theory about bank scale and risk; And secondly, carries on the analysis to the status of our country commercial bank size and risk; thirdly, from empirical study researches the relationship between the scale of China’s commercial Banks and risk based on the2004-2012related annual data of China’s commercial Banks; Finally, sums up the conclusion and put forward the corresponding policy recommendations on the basis of the foregoing analysis. The empirical results show that there is a significant positive correlation between our country Commercial Banks’ scale and risk, and when the bank asset growth rate is lower than40%, the bank’s risk with the asset scale growth speed gradually reduce; when the bank asset growth rate is higher than40%, with the speeding up of the growth rate of assets, the bank’s risk is bigger and bigger.