Research On The Effects Of The Loan Industry Structure On The Operating Performance Of The Commercial Banks In China

As the hub between the capital demanders and suppliers,the allocation of bank credit funds plays an important role in the economic development,but with the mainly completion of the marketization of interest rate in our country,foreign banks'entry and normalized development of private capital getting into the banking industry,the situation that the commercial bank faces is more and more serious,so improving business performance is important to the commercial banks.As the key business of commercial banks,the reasonable structure of loans is of great significance to improve the business performance of the commercial Banks,the purpose of this paper is to research the relationship between the commercial Banks operating performance and the loans to different industries,it can not only to optimize the industry structure of commercial banks' loans,but also to improve the operating performance of commercial banks.Researching on the relationship between different industries and different types of commercial banks operating performance is significant to provide reference to various types of commercial banks lending target industry,to improve the business performance,and to promote the healthy development of economy.According to summarizing the related research of the previous scholars,this paper has a theoretical analysis to understand how the commercial bank loans between different industrys influence its operating performance.Analysis to the overall situation of 16 listed commercial banks in China,we find that China's listed commercial banks' lending industry concentration degree is high,the loans mainly flow to the manufacturing,real estate industry,wholesale and retail trade and transportation,warehousing and postal service.In addition,in the empirical analysis,this paper selects 16 listed commercial banks' data in China from 2008 to 2015,using the panel data method to analysis the industry structure's impact on China's listed commercial banks' operating performance,and contrasting the different effects between different types of listed commercial banks' loan structure and the operating performance.The results show that different industries loan ratio affect the business performance of the listed commercial banks in different ways,and different types listed commercial banks industry loan ratio influences the business performance also in different ways.Finally,this paper give some advices including that different types of commercial banks should determine the reasonable target lending industry structure according to the different circumstance.Commercial banks should properly control the loans to the monopoly industries,increase loans to emerging industry and the science-education-culture-health industry.