A Study On The Influence Of Government Ownership On The Risk-Taking Of Urban Commercial Banks

This paper selects the panel data of 43 urban commercial Banks in China from 2010 to2018 as the research samples to conduct empirical research on the relationship between government equity and risk taking of urban commercial Banks.At present,few mainstream journals directly study the relationship between risk taking and government shareholding,and most scholars believe that government shareholding only shows the predatory effect on urban commercial Banks,that is,it increases the risk taking of urban commercial Banks.On the other hand,this paper finds through empirical research that,for small city commercial Banks,there is a significant U-shaped relationship between government equity and risk taking,and there is a threshold effect with government shareholding ratio as the threshold value.When the government's shareholding ratio is less than the threshold value,the government's shareholding has a significant restraining effect on the risk-taking of urban commercial Banks;on the contrary,when the government's shareholding ratio is greater than the threshold value,the government's shareholding will significantly increase the risk-taking of urban commercial Banks.Further research shows that government shareholders will intervene in the operation and risk-taking behavior of city commercial Banks according to the fluctuation of local economy.When local economic recession or negative fluctuations occur,government shareholders increase the degree of intervention in urban commercial Banks,by increasing the credit scale to mitigate the negative impact of economic fluctuations,so as to increase the risk of Banks;On the contrary,positive fluctuations in economic conditions can mitigate government equity intervention,thus reducing Banks' risk exposure.For large city commercial Banks,government equity often shows the characteristics of increasing their risk taking in the operation process,and the U-shaped relationship and threshold effect are not significant.This paper argues that for small urban commercial Banks,the government should control the proportion of government shareholding within an appropriate range,reduce the direct intervention of government shareholders on their business activities,and focus on their business risks.Today,the development of large city commercial Banks gradually specification,benefit from the local economic prosperity,its profitability and risk management ability gradually to joint-stock Banks and large commercial Banks,therefore,on the one hand,the government should according to the big city commercial bank's risk appetite and risk management ability and reasonable business decisions;On the other hand,the government should gradually relax its control over its equity,appropriately introduce private capital andoverseas capital,and inject new vitality into large urban firms.