The Research On Loan Concentration’s Risk Effect Of Chinese Listed Commercial Bank

Commercial bank is the core of the credit market sector,its credit resource allocation efficiency reflects its management efficiency and the whole social resource allocation efficiency,and affect the long-term development of the national economy.In recent years,the phenomenon of loan concentration is increasingly prominent,the credit resource allocation mainly concentrated on some hot industry,which may brings considerable benefits to the banks in the short term and also supports the national policy orientation,but it can pose huge risks in the long run,which will leads to loss of banks.Therefore,the correct understanding of commercial bank’s loan concentration and analysis of influence on the operational risks help to prevent the crisis triggered by loan concentration,and have great significance to the decision-making of commercial bank,the improvement of financial regulation,the healthy development of our financial economic.Select China’s 16 listed commercial banks 2010-2014 data as the research object,using the theoretical and empirical,qualitative and quantitative analysis methods to study the relationship between loan concentration and bank’s operational risk. First of all,after summarizing the related literature at home and abroad,this article gives a definition on loan concentration,and clearly analyzed from the perspective of industry concentration,determines the main research method to be used.Second,figure out loan concentration’current situation making use of 16 listed banks’annual reports,compare and analyze of common methods of measurement of loan concentration,this paper argues that Herfindahl Hirschman Index is the most appropriate method to measure our commercial banks’ industry concentration.Third,research the risk effect of industry concentration respectively from the perspective of the banking industry,enterprise and society.Then,calculate the industry concentration data,choose"Non-Performing Loan Ratio"to reflect operational risk,adopt empirical study method to method to analyze the industry concentration effect,the results demonstrate significant positive correlation between industry concentration of loan and bad loan rate.Finally,based on the above empirical analysis results and the reality,supply some ideas and advises to prevent industry concentration risk from the perspective of regulators,operators.