Research On The Risks And Benefits Of Cross Regional Development Of City Commercial Banks

In recent years,due to the booming financial markets as well as expanding their scale,city commercial banks changed from the original mainly serve local economic development model to cross-regional development model, and even some city commercial banks expand their business scope to various regions of the country,catching up with the national joint-stock commercial banks. So the study of the risks and benefits of the cross-regional development of city commercial banks is necessary.This article summarizes the city firm’s main modes of cross-regional development,study in-depth the literature on city commercial banks of cross-regional development through the world and summarizes the status and the problems of cross-regional development of city commercial banks of china,combines the financial reports index system of the city commercial banks and banking regulatory commission report comments to shortlist nine indicators of financial data indicators and non-financial data indicators. Calculate the average of these non-financial indicators and financial indicators, medianmaximumminimumand standard deviation. And correlation analysis for each variable. Meanwhile,in order to avoid spurious regression four methods of unit root test. By hausman test to determine the choice of the random effects model in the future,the use of least squares regression analysis,empirical results show that: the city commercial banks may not be able to improve its profitability by cross-regional development. And the city commercial banks in developed areas can be preferentially cross-regional developing. Also the city commercial banks may not be able to diversify its revenue through cross-regional development.According to the above conclusion,this paper recommends that city commercial banks should choose a reasonable cross-regional development model to avoid blindness,a reasonable choice of target cities across the region to avoid excessive concentration,a reasonable structure of ownership to avoid dominance.