Study On The Performance Of Diversified Operation And Urban Commercial Bank

In recent years,the external business environment of city commercial banks has become increasingly complex,the reform of interest rate marketization close to the end,and the emergence of shadow banking in the background of financial disin-termediation has greatly impacted the profitability of the traditional business.The competition in the industry is intensifying,and the large-scale merger and reorganization of financial enterprises has put forward higher requirements for the improvement of core competitiveness.In addition,the lack of financial innovation,small scale,and poor ability to withstand risks have brought serious challenges to the development of city commercial Banks.The risk of urban commercial Banks is increasing year by year,but the profitability is not improved,which indicates that the development of city commercial Banks is very difficult.In order to adapt to the complex external environmentchanges and cope with the huge competition pressure on the in dustry,the diversification of income and diversified businessscope has become the mainstream trend of the operation and development of city commercial Banks.In the context of the near end of interest rate liberalization,we hope to be able to analyze through both theory and data,to reasonable evaluation the city commercial Banks' scale economy and scope economy level,provide a reference to city commercial bank diversification management mode choice,further promote the reform and improve the regulatory system.In this paper,we do empirical study on 50 city commercial banks,respectively to measure the various city business decade scales economy and scope economy level,using the panel data onto quantitative analysis of diversification and not the same performance of the linear relationship between city firms,and come to the following conclusions:(1)The scale economy and scope economic coefficient of city commercial Banks is calculated by using the model of transcendental logarithmic cost function.The results showed: The scale economy sample point is 329,the scale is not economic sample point 116;There are one sample point show non-economic samples,300 sample points show EQS>0,144 sample points show EQS<0.(2)The scale economy has a significant positive influence on the diversified performance of city commercial Banks;The scope economy level only has significant negative effect on the diversification performance of small city commercial Banks;The income diversification has significant positive influence on the performance of all kinds of city commercial Banks,and has the biggest influence on small city commercial Banks;The business scope diversity can only to large city commercial bank performance have significant positive impact.At present,China's financial reform is progressing steadily,and the new competitive-e environment brings pressure on the city commercial bank,but also brings the opportunity for development.City commercial Banks should take the advantages and challenges about diversified operation in a reasonable way,and then solve their own positioning problems.At the same time,the regulators should provide a healthy development environment for the diversified operation of city commerceal Banks.