Research On The Impact Of Competition Of Banking Industry In China On Banks' Risk Taking

With the development of financial market reform is speeding up,the competition between banks is more and more intense.In recent years,China's interest rate market has become an increasingly obvious trend,in 2013,the central bank released the lending rates of financial institutions control,2015,the central bank has repeatedly lowered interest rates for deposits and loans,traditional banking deposit and loan business has been unable to meet the needs of the financial market,the transformation of the banking development imminent.In addition,foreign banks,private banks to join,trust,leasing and other non financial institutions,as well as the emergence of the Internet and the pop-ularity of the financial sector,no doubt to the banking industry has brought a greater impact on the operation and development.Whether it is from their own business or the external environment,the banking sector is facing increasing competitive pressure.Therefore,in the financial market gradually mature today,to enhance the degree of competition can add new vitality to the banking industry,but also the transition to the banking industry development has brought new challenges.First of all,this paper makes a brief exposition of the research content,and illustrates the relationship between banking competition and bank risk taking.Then at home and abroad,the theoretical and empirical analysis of the relationship between the two are compared and analyzed.On this basis,this paper selected the competitiveness measure index and risk commitment index,the panel data of 24 commercial banks in our country from 2006 to 2014 were empirically studied.The results show that:the competition degree of banking industry and bank risk assumed a significant linear relationship,and the two are positively correlated.When the banking industry competition is more intense,the bank should bear the risk is greater;conversely,the smaller.In addition,this paper will be divided into three categories,namely,large commercial banks,joint-stock commercial banks and city commercial banks.The empirical results show that there is a difference in the relationship between competition and bank risk in different types of banks.For the joint-stock banks,there is a significant linear relationship,while for large commercial banks and city commercial banks,there is no linear relationship between the two.