A Study On The Impact Of Chinese Banking Competition On The Risk Assumption Of Listed Banks

Unlike ordinary financial enterprises,commercial banks can multiply the amount of money issued by the central bank by means of derivative deposits,and can also rely on their own information advantages.Through the way of taking in depositors' deposits and issuing loans,it has made a great contribution to the development of social economy by building a bridge between the surplus of social funds and the people who are short of funds.The asset structure of commercial banks is different from ordinary enterprises,the ratio of assets to liabilities is high,and the fragility of asset structure is related to the safety of depositors' funds.Now,the financial supervision department loosens the supervision of the financial institution,the central bank also deregulates the interest rate of deposit and loan.In China,the joint-stock banks and urban commercial banks,which are increasingly flourishing,have taken a place in the banking sector.The growth of online banks such as Zhejiang Internet Merchants Bank has brought new vitality to our banking industry,but it has also been accompanied by risks.Scholars realize that the research on the relationship between banking competition and individual risk should be paid more attention.This paper analyzes the listed banks.The data sample set includes five banks and other listed city commercial banks and joint-stock commercial banks in 2007.The data are selected from 2007 to 2016.The risk level of commercial banks is measured by Z index and non-performing loan ratio,and the HHI index is selected as the measure index of competition degree from the angle of industry structure and competition,and the relationship between banking competition and individual risk status of banks is studied.The results show that,with the decline of Herfendal index,the Z index of commercial banks shows a downward trend,and the non—performing loan ratio is on the rise,indicating the trend of commercial banks in China.The size of the risk is increased by increased competition.This paper also finds that although the increasing competition leads to the deterioration of the banking risk situation,in fact,China's banking industry needs more competition incentives,which should further enhance the competitive vitality of the banking market.It also puts forward some policy suggestions on how to improve the efficiency of management and grasp the risk control to deal with the impact of the increasing competition in the banking industry.