Research On The Affect Between The Credit Concentraion And The Business Performance Of The Listed Commercial Bank Of China

In 2008, a global financial storm triggered by the sub-prime mortgage crisis of The United States, making the risk of investment banking business appeared. So bank’s asset operation loans primarily for avoiding risk. How to arrange the loan structure and to put in the credit scale will still be the problems for commercial Banks in China. In this paper, with the angle of credit concentration as the breakthrough point, we focus on the influence of the concentration of credit on our commercial Banks. Many domestic and foreign scholars studied the problem of credit concentration, they mainly focus on the analysis of the causes of the phenomenon of credit concentration, and its influence and so on. There are a few scholars empirical analyze the influence of the credit concentration for the earnings and risk of commercial Banks in china. But the real measure of a bank credit concentration influence index can not only separate the benefits and risks, because the credit concentration not only can bring benefits, but also can bring risk. So they can not give a strong suggestion for commercial bank credit facility. There will be more meaningful if we focus credit concentration problem with both benefits and risk of commercial Banks.Due to the business performance of commercial bank both reflect earnings aspects and the risk factors, so it is a good alternative indicators on the study of credit concentration. We selected 11 indexes from the bank’s asset management capabilities, profitability, solvency ratio and business growth to get a comprehensive value to measure the level of overall bank performance. Then with a new perspective examine the overall level of business performance of listed commercial banks with the use of the customer concentration, industry concentration and regional concentration. This paper selects 2005-2012 annual data of 14 listed commercial Banks in china, with the use of theoretical and empirical we can get the conclusion:(1)The influence of the credit concentration on commercial Banks has a lag effect; (2) Credit to customers and industry centralization would improve the business performance level of the bank, not the focus on areas; (3) The affect of credit concentration of state-owned commercial bank is relatively big than the joint-stock commercial Banks. In the end of the paper there are some suggestion for the micro level in the commercial bank and the macro in the national level.