China’s Commercial Bank Loan Concentration An Its Risk Control Research

Commercial bank is a special kind of enterprise, the so-called special, because itwas based on the business assets and liabilities of the business, to ensure safety andliquidity at the same time, the pursuit of profit maximization. In the pursuit ofmaximum profit space, the loans to commercial Banks shall be subject to the centralizedstrategy, although increased profits, but the resulting risk cannot be ignored.Aiming at the condition of the our country commercial bank loans, in this article,through sorting the data listed bank annual report disclosure more in-depth research,probes into the commercial Banks in our country at present in terms of loanconcentration on its risk, and how to control risk in ensuring that both profit at the sametime.In present situation analysis, this article focuses on the our country commercialbank loans to the industry, region, and the distribution characteristics of the three bigcustomers, and from the time span concentrated on the development of the commercialbank loans in China, further focus on lending risk compared the profound thinking.Based on analyzing our country commercial bank loan concentration, andintegrated the international current popular estimation methods, and some advancedideas, choose a reasonable method to measure loan concentration of the specificsituation in our country, through to the listed bank loan concentration measurement, toreflect the overall situation. To get the corresponding panel data, using the appropriatemodel for this problem are analyzed.The results show that the commercial bank loan concentration has a big differencebetween and its effect on the risk degree is different. Through the empirical analysisresults, coupled with the popular way in the world today, combined with the actualsituation of our country at present the development of the field, this paper summarizesthe analysis of the risk of loans as well as corresponding risk control countermeasure.