Research On The Impact Of Commercial Bank's Asset Size On Risk Of China

The supervision of commercial banks' risk has always been the focus of scholars and regulators.In 2008,the subprime mortgage crisis happened in the United States,under the background of economic globalization,has gradually evolved into a global financial crisis.As a result,the control of the risk of large commercial banks has aroused the attention of the regulatory authorities and scholars,and the relationship between the size and risk of commercial banks has also received more and more attention from all walks of life.At present,the scale of China's commercial banks is still in the growing stage,especially the total assets of the five large commercial banks accounted for nearly half of the total assets of the banking financial institutions.With the continuous opening of China's financial system,the influx of foreign banks in China will undoubtedly exacerbate the competitive pressures of domestic commercial banks,which requires commercial banks to pay more attention to the management of their own risks.Therefore,this paper systematically studies the relationship between the scale and the risk of commercial banks.In this paper,the annual financial data of 92 commercial banks in China in 2008-2015 were selected.The methods of empirical analysis,literature review and comparative analysis were used.The text is divided into five chapters,the chapters are as follows: the first chapter introduces the research background and significance of the topic,and combing the research content and research ideas;the second chapter first defines the relevant concepts,then reviews the related theory,finally summarizes and introduces the related literature;the third chapter introduces the present situation of commercial banks in China,followed by practical situation and results based on literature review,put forward the research hypothesis;the fourth chapter uses the relevant data to make an empirical analysis of the relationship between commercial bank size and risk;the fifth chapter summarizes the results of empirical analysis and puts forward relevant policy suggestions and future research direction.The main conclusions of this paper are as follows: firstly,the scale of China's commercial banks is negatively correlated with bankruptcy risk and operating risk,and there is a U-shaped relationship between the scale of commercial banks and credit risk in China;secondly,the effect of scale on risk is different in different sub samples,from the classification of listed or not,the impact of the scale on the bankruptcy risk and operating risk of listed commercial banks is greater than that of non-listed commercial banks,from the classification of China Banking Regulatory Commission,in the large commercial banks,joint-stock commercial banks,City Commercial Banks,scale has the greatest impact on the bankruptcy risk and operating risk of large commercial banks;finally,through the decomposition of risk indicators,it is concluded that the ratio of capital to assets is the main factor for the scale expansion of commercial banks to reduce the risk,commercial banks will increase their capital while expanding,and then it can reduce the risk.