Research On The Cross-regional Operation Performance Of Chinese City Commercial Banks Based On EVA Method

Since 2007,the China banking regulatory commission approved the first city commercial bank(hereinafter referred to as the "city business")of the cross-regional business application,city commercial Banks cross-regional operation is presented the trend of rapid development,until April 2011,regulators suspended city businesses beyond the expansion,branch,city firm intercity,across the province and even across the country set up a branch,the trend of blossoming to slow.In February 2013,the China banking regulatory commission revealed the general office of the China banking regulatory commission(CBRC)about 2013 rural financial service work notice support to promote rural credit cooperatives into rural commercial bank,at the same time,also puts forward the requirements of city business expansion,"allow city businesses in economy closely area surrounding the facility and shall set up branches,but not across provinces,inhibition of blind expansion impulse".2013 later,many want to set up across the city of the province branch of foreign businesses settle for second best,cross-regional operation up rapidly in neighboring cities in the province,many city businesses realized the full coverage in the province to set up different branches.But for businesses across the province city different branch of the examination and approval,the banking regulator has been in the stagnation of the basic state,or more actively guide city firm their own clear positioning,adhere to service local,small and medium-sized enterprises,strengthen its own risk management ability.For the local city commercial banks,in the service of small and medium-sized enterprises,cross-regional operation strategy can effectively improve the performance of management,many scholars have on the performance of the cross-regional operation carried out some analysis,analysis methods are mostly using the return on assets(ROA)and return on equity(ROE)method for operational performance analysis,use of non-performing loans(NPL)for risk analysis.But a strategy choice of cross-regional business,the influence on operational performance for a long period of time is needed to have a significant effect;the analysis of the use of economic indicators also must consider the question,so as to make the analysis more convincing and guidance.This paper using the economic value added(EVA)method to analyze city businesses across the region after the strategy implementation of operational performance,based on the analysis of operational performance at the same time,considering the influence of various risks,especially to unexpected loss impact on business performance,cross-regional operation and city firms more comprehensive,integrated analysis,trying to more scientific and rational analysis conclusion,further explain and guide the cross-regional operation strategy of city firms.In this paper,the concrete content is as follows:the first chapter of this article research background and meaning,summarizes the domestic and foreign relevant city commercial bank cross-regional operation of operation performance and the influence of EVA in the commercial Banks operating performance analysis using the literature and put forward the innovation of this paper and deficiencies;The second chapter first analyzes the traditional commercial bank management performance evaluation index and method of the problems and limitations,and then introduces the concept and the economic meaning of EVA,and points out that using the advantages of evaluating index analysis of commercial bank management performance;The third chapter mainly introduces the inter-district management situation of city business city businesses across the region development process can be divided into four stages,each stage are analyzed in detail the city business cross-regional business policy changes,cross-regional operation to carry out the main way,set up different branch number,and then analyzes the city business situation and existing problems of cross-regional operation;The fourth chapter is the empirical analysis,selected the 50 samples of typical city commercial act,according to the provision of commercial bank loan loss preparation for quantitative expected losses,using the relevant data to quantify cross-regional operation in the process of the credit risk,market risk and operational risk and other unexpected risk the required amount of capital(economic capital),cross-regional operation in the process of sample analysis city firm changes trend of EVA index,analysis of city business cross-regional operation mechanism of the impact on the operation performance and influence.The fifth chapter according to the results of the fourth chapter the empirical research conclusion,and combined with the third chapter analyses the present situation and the problems of city businesses across regions,regulators to firm itself and city firm put forward the corresponding policy recommendations.By 2010-2016 to 50 representative city firm EVA index of calculation and analysis,and established a panel regression model,the city of most business scope of cross-regional business to expand the market,reduce the average cost,dispersing risk,get the cross-regional operation of scale economy,create more value for our shareholders.However,the effect of cross-regional operation on the operation performance of different cities and businesses is very different,and the performance of the business of a few cities can be reduced and the value of shareholders will be harmed.At the same time,the impact of cross-regional operation on the operation performance of the city is also determined by the characteristics of the regional operation and its own characteristics.Based on the above conclusions,the paper puts forward corresponding policy suggestions for the city commercial bank and the city commercial bank.