Research On China's Commercial Banks' Assets And Liabilities Structure's Influence On Its Value

In the context of financial disintermediation,interest rate liberalization and vigorous rise of Internet finance,the development of commercial banks is facing continuous challenges.Commercial banks are the enterprises that work on currency.Its essence is dealing with risks.Due to their unique attributes,commercial banks have inherent fragility.The top priority is to improve their own value in order to maintain stable profitability in the ups and downs of economic development.The businesses of commercial banks are mainly around the liquidity,safety and profitability,all of which should be evenly paid attention to to keep the value growth of commercial banks.The assets and liabilities structure of commercial banks is the basis of their businesses and affects their operating conditions.Different configuration structures have different impact on the value of the banks..On the basis of the existing research results,this paper seeks the value of the assets and liabilities structure of commercial banks as an entry point and takes this as the research object.This paper studies the impact of the assets and liabilities structure of commercial banks on their value through the combination of theory and empirical method.This paper first defines the asset structure,debt structure and value of commercial banks and illustrates the relationship between the assets and liabilities structure of them and their value.On the basis of that,mainly 16 listed commercial banks are chosen to analyze the present situation of the relationship between the asset and reliability structure of commercial banks and their values in China.The empirical part uses eviews8.0 software,and then selects the data of 16 listed commercial banks during years of 2011-2016.The commercial bank value is expressed with EVA value;proportion of cash assets,ratio of investment assets and proportion of loan assets are selected to evaluate the asset structure of commercial banks;proportion of active debt and passive debt ration are used to express debt structures of commercial banks.In this study,the explanatory variable is the asset and liability structure of commercial banks,which is presented with assets and liabilities;the control variables are non-interest income ration and bank size.Accordingly,the panel data is built and a regression model is created.Finally,the empirical results are obtained,which show that positively correlated with commercial banks' value are proportion of cash assets,ratio of investment assets,proportion of loan assets,assets and liabilities,non-interest incomeproportion and bank size and that negatively correlated are proportion of active debt and passive debt ratio.Combined with the current situation of the asset and liability structure of commercial banks of China and the result of empirical analysis,this paper makes four suggestions in order to improve the value of commercial banks.First of all,we need to optimize the asset structure of commercial banks,adjust the proportion of all kinds of assets and unify the liquidity and profitability of commercial banks.Secondly,the reliability structure of commercial banks needs adjusting and the active liability could be increased to reduce the liquidity risk of commercial banks.Thirdly,business and product innovation is needed to increase the non-interest income.Fourthly,the existing resources should be used to adjust strategies,develop potential customers and expand the scale of banks.