Research On The Stability And Dynamic Change Of China's Small And Medium Sized Joint-stock Commercial Banks

Bank soundness has been one of the key issues in theory and practice,with the deepening of financial reform,the environment of China's commercial banks operation has unprecedented changes,a series of changes,such as Internet finance and marketization of interest rate,have a huge impact on the steady operation of China's commercial banks.Due to the small size of capital,small branches and other characteristics,China's small and medium-sized joint-stock commercial banks are more vulnerable to the impact of changes in external conditions.However,small and medium sized joint-stock commercial banks have their unique advantages in organizational mechanism,product innovation and customer groups.Thus the stability of small and medium-sized joint-stock commercial banks plays an important role in the steady operation of China's banking system.This paper reviews the domestic and foreign literatures on the definition of the concept of commercial banks Soundness.On this basis,We select 8 listed stock commercial banks 2009-2015 years of data as a sample,and set seven representative indicators selected from the commercial banks' capital adequacy,asset quality,profitability and liquidity to analysis bank Soundness level.According to the selected indicators,we construct a Soundness index of China's stock commercial banks,and to measure our stock commercial banks soundness level with sample data.The results show that the Soundness level of our nation stock commercial banks,from 2009 to 2011,has a steady upward trend,and after 2012 to 2015,appear slow down.But overall,China's stock commercial banks are in a high level of Soundness.Horizontal comparison,Comparing with City commercial banks and large state-owned banks,The Soundness of stock commercial banks are the lowest.This paper empirical studies the influence factors of the small and medium sized joint-stock commercial banks in china.Through entity fixed effects regression model analysis,the influence of the Internet financial(ITFIN),net interest margin(IGAP),the proportion of non interest income(NII),liquidity gap(DLGAP),GDP growth rate,inflation level CPI and the small and medium-sized enterprise boom index(SMEI)on China's small and medium-sized joint-stock commercial bank stability are significant.Through using Grainger test and the panel vector autoregressive(PVAR)model,the development of Internet financial has a negative impact on the stability of China's small and medium-sized joint-stock commercial banks,weakening the soundness of banks.There is still a positive correlation between IGAP and bank soundness.However,the improvement of NII does not enhance the stability of China's small and medium-sized joint-stock commercial banks.RGDP and SMEI have positive effect on the stability of small and medium sized joint-stock commercial banks in China.Through variance decomposition,the ranking of the influence degree on the small and medium sized joint-stock commercial banks in China is DLGAP,RGDP,NII,IGAP,ITFIN,CPI and SMEI.This study is aimed at the stability of China's small and medium-sized joint-stock commercial banks,and the impact of changes in the robustness of the factors affecting multiple levels of research and analysis,with a certain degree of innovation.However,bank soundness is a complex and huge problem,and each factor is related to each other.Although the study of the factors affecting the robustness of multiple levels of exploration,it still can not avoid the simplification of the problem,so the stability of China's small and medium joint-stock commercial banks need to further improve the study.