The Impact Of Loan Concentration On The Risk Of Commercial Banks In China And The Regulatory Revelation

Commercial bank loan concentration is a phenomenon that the loan fund is concentrated in some aspects,resulting in uneven resource allocation.With the constant change of the external environment of the market and the increasing competition in the same industry,the standard of loan concentration is always excessive in recent years.However,commercial banks play an important role in China's economic system,and the impacts of loan concentration on its risks cannot be ignored.In previous studies,there was always a lot of debate about the impact of loans on the risks of commercial banks.While regulators set up a supervision on commercial bank loan concentration index,but the index is still very single,commercial bank itself for the attention of the risk also needs to improve.Therefore,this paper mainly uses the combination of theoretical and empirical analysis to explore the impact of loan concentration on commercial bank risk,try to improve the focus on concentration risk and further improve the monitoring and prevention of centrality risk.Theoretical analysis aspect,collects data of 16 listed banks loans,we find that the loan concentration existing in commercial banks in our country for a long time,the industrial concentration and regional concentration are the most obvious.Then this paper selects the corresponding index of our country commercial bank loan concentration measurement,combined with the data statistics and measurement result describes the current situation of our country commercial bank loan concentration and the change trend,and from the perspective of macro and micro,analyzes the cause of this phenomenon.In addition,the loan concentration is divided into customer concentration,industrial concentration and regional concentration,analyzes the path of its influence on commercial bank risk from multiple aspects,and divides commercial banks according to the type,and analyzes the difference of the risk impact of the loan concentration in combination with the characteristics of different types of commercial banks.At the same time,compared with the current Basel committee and China's regulatory requirements on the risk of loan concentration,and combined with the centralized situation of commercial bank loans in recent years,this paper briefly evaluates the risk supervision of concentration degree in China.Empirical analysis aspect,uses the non-performing loan ratio and bankruptcy index to measure the risk of commercial banks,to build the static and dynamic panel data model,considering the lag effect of the risk,then we compare two kinds of model estimation results.The empirical results show that the customer concentration will generally increases the risk of commercial banks,while the concentration of the industry and the region have great differences on the risks of different types of commercial banks.In particular,for city commercial banks,the concentration of industry and region is more important to the risk of exposure.Finally,in view of the current regulations,effects and shortcomings of China's concentration risk regulation,the supervision authorities and commercial Banks are advised by reference to the supervision experience of other countries.