The Research Of Cross Regional Growth Of City Commercial Banks In China

City commercial bank is an important component of the multi-level financialsystem of our country, but it always has problems such as unclear positioning andobviously homogenized competition in terms of its own development. In2011, thenumber of city commercial banks in our country has reduced for the first time, whichmarked the basic completion of the reorganization of city credit cooperatives. Also inthat year, China Banking Regulatory Commission began to limit the cross-regionaloperations of commercial banks. Combined with China’s overall economic slowdownand the advancement of marketization of interest rate, the growth turning point of citycommercial banks has already arrived. Thus in this paper, its study of the cross-regional operation path of city commercial banks and its further growth mode is ofgreat significance.The analysis of this thesis includes several parts: basic theory, empirical research,experience from aboard and countermeasures. Based on the enterprise growth theoriesfrom neoclassical economics, neoinstitutional economics and endogenous growththeory, it concludes the growth connotation and growth route of city commercialbanks, and then gives a qualitative analysis to its cross region effects. As to theempirical research, it firstly summarizes the current situation of city commercialbanks’ cross regional growth, then from the perspective of bank efficiency and loanamount to small and medium-sized enterprises it gives empirical tests to the macro-effect and the micro-effect of city commercial banks’ cross regional growthrespectively. The results indicate that from2005to2012, the technical efficiency ofcity commercial banks have declined as a whole. The rise of the total factorproductivity can be largely attributes to scale efficiency. And several city commercialbanks’ scale efficiency has begun to drop. What is more, the cross regional indexinfluenced the city commercial banks’ efficiency negatively. During the cross regionprocess, most city commercial banks have cut down the loan to small and medium-sized enterprises, though some of them made adjustments to such a problem, someothers still hold a lower level to this index compared to before. So we draw aconclusion that city commercial Banks didn’t have a clear orientation and weredepend too much on scale exaggeration in their growth procedure. Another problem isthat they have low standard in technique and management. In terms of the referenceof foreign experiences, this article selects the typical American community banks and Japanese regional banks, summarizes their development history and managementcharacteristics thus considers that the operating problems exist in China’s citycommercial banks are objective and they will have a lot of space to grow further. Interms of countermeasures, this paper introduces the theory of complex system, takingcity commercial banks as adaptable principal parts and putting their growth problemsinto the growth system of city commercial bank to consider. At last it puts forwardboth micro and macro countermeasures to the adaptively growth of city commercialbanks. That means city commercial banks should improve the internal mechanism andmanagement and adhere to the service of small and medium-sized enterprises basedon local economy, improve the level of technology and innovation ability, at the sametime strengthen the forecasts to environment. The government should also implementdifferent managements to city commercial banks, strengthen risk control and providecorresponding preferential policies to city commercial banks.