The Research On Cross-regional Business Risk Of S Bank

Since 2006,the part of of our city commercial banks had to implement cross-region development.From then on,our commercial banks continue to take cities and seize territory.Development is very rapid.The scale cntinues to expand.The proportion of the banking market is increasing.City commercial banks are bright stars in recent years.Their development is adding vitality of the market,playing a very positive role to the domestic financial and economy,and expanding in banking industry of component.These banks have more right to speak.Therefore,to research the important group is more and more necessary.Among them,the research on cross-region development is more important.And the risk of cross-region development is the most concerned problem in the banking and academic circles.Therefore,this paper attempts to study the risk of cross regional operation of banks based on the case of S bank,and analyse the cross-region development of indicators of S bank,and demonstrate its crossing regional business situation.Why choose S bank as a case? Because most of the scale of the city commercial banks are at the same level with S bank.They are not only city commercial banks,and their size are smaller too.So,taking S bank as a case study is very representative.It can provide a reference for many city commercial banks in operating across the region and has strong meanings.In this paper,the city commercial banks cross-regional business background and related research are introduced.And then the S bank cross-regional operation of the basic situation is described.In the province,city commercial banks cross-region development has been like a raging fire.Among many city commercial banks,the speed of the S bank cross-region development is not fast.Under the preasure of the competition situation,the S bank has accelerated the pace of recent years.The S bank cross-region development has achieved what results? Cross regional has brought what positive impact to the S bank? These are introduced in the second chapter.Not only did the business of S bank change bigger,but also got the brand effect,improved the quality of personnel,was beneficial to the improvement of the equity structure.This article analyses the operation data of the S bank from 2009 to 2015 to study the risk changes of the cross-region development of S bank and to find the reasons.In terms of risk,this article analysis from the average loan and loan term structure,industry classification and data.The average loan refers to the average household loans,including business loans,consumer loans,also contain deposit certificates and other low-risk loans.It mainly reflects the risk of S bank loans.We also can see what customers S bank likes to choose;From the loan period structure we can see the S branch of bank loans,short-term loans and long-term overall collocation.We can see its liquidity of loans,Short-term loans are liquidity,long-term loans are illiquid;Industry classification can see the tendency of S bank in the choice of the industry.On the whole,if the industry are more widely,the risk is more dispersed.If the industry concentration is too high,it will lead to a decline in the ability to resist risks,and can easily cause major risk events in this area;We select the non-performing loan rate as a measure of risk indicators.Non-performing loans and non-performing loan rate are digital proof of a bank risk control capabilities.Through the remote and local data comparison,we can conclude the differences in the influence of cross-region development risks of the headquarters and the local risk control ability.By describing the changes in the overall of the cross regional business of S bank,we can compare the relevant business indexes between the different branches.Then we can find that after S bank cross-region development,the remote asset size,deposit,profit ability will continue to increase.But the growth rate was faster only in the opening two years.Then the growth is slowing,and the market share of ratio is still very low.Not only that,the remote loan growth,asset quality and profitability are not satisfactory.S bank branches in other places contribute little to the headquarters in terms of loan and profit.Bad loans in the proportion of the total line is relatively large.Through the analysis of these indicators,we are not difficult to see that S bank branches in different places continue to develop,but the speed is relatively slow,and the risk control ability is weak.After the selection of relevant indicators for S bank cross regional business data analysis,this paper also analyzes the specific situation of S bank cross regional business risk.Credit risk,operational risk,management risk,competition risk are increasing,and the capital consume a lot,and the market positioning deviate and so on.These risks can not be directly reflected by the data.However,they are also real existent and will directly or indirectly affect the operating indicators of S bank.The empirical results show that S bank set up branches in the rapid development period of inter regional operation.Its non-performing loan ratio will increase.The risk is higher.The relative contribution to the local revenue is relatively low.However,cross-region development seems to have to do.So,It is no need to discuss whether or not to cross-region development.What we can do is how to do a better job of cross-region development.This paper put forward in that when S bank cross regional business it should expand customer groups,accurate and adhere to market positioning,and improve the assessment and training system,establish its risk management system,establish a special product system,deepen the construction of enterprise culture,etc.