A Study On The Effect Of Loan Concentration On Operation Efficiency Of Agricultural Bank HT Branch

Loan concentration means that the commercial banks offer loans in one or several related areas,which causes excessive concentration of bank credit funds in some aspects.It's a way of allocating credit resources.Centralized lending can increase bank profits,reduce regulatory costs and risk of investment errors.But the high concentration ratio would not only increases the banks systemic risk,but also do harm to coordinated development of economy.Lending activity is the main source of commercial banks profitability.The allocation efficiency of loan resources has a direct impact on the efficiency of both social resource allocation and commercial banks operation.How to improve the allocation efficiency of loan resources has great significance to improve commercial banks performance.Driven by reducing regulatory costs and increasing profit,commercial banks tend to lending in some industries with higher profitability and developed areas.If the concentration ratio of loan still stay in a high position without going down and turn out to be a threat of commercial banks operation,which would lead to bank crisis extremely easy.This paper took Agricultural Bank of China HT branch which I worked for as object of study and adopted literature research method,data analysis,investigation and research,etc.to study about its loan concentration ratio.And I had built model to evaluate its impact on bank business performance,so as to provide useful help for HT branch of Agricultural Bank of China future development via knowledge learned during school.The research contents are divided into five parts:the first part introduces the background,content,method and significance of this study and reviews the related literatures at home and abroad,which pointes out the research direction.The second part is the theoretical basis of this paper,mainly analyzes the theory and formation mechanism of loan concentration,loan concentration current situation in China,the relevant provisions home and abroad.It lays a cornerstone for the study.The third part is about the analysis of the loan concentration current situation in HT branch,mainly analyzes the current situation,lending activity status and loan concentration situation of HT.The fourth part is the evaluation of loan concentration current situation in HT branch.Firstly,state clearly about the evaluation principles and objectives.Then,set up the evaluation index system via analytic hierarchy process.Finally,on above mentioned basis,the Fuzzy Comprehensive Evaluation is used to analyze the result.The fifth part is related optimization suggestions and safeguard measures.