An Empirical Study On The Impact Of Interbank Business Structure On Commercial Banks' Risks

With the marketization of interest rates in China and the continuous advancement of financial disintermediation,banks have also gradually felt the pressure from the weakening of traditional profit models,and they have started to actively innovate their businesses and seek new points of interest growth.At this time,the high-yield of interbank business and the functional advantage of evading supervision were favored by major banks.As a result,banks began to vigorously pursue their interbank business,and some banks once developed inter-bank business to become the number three business after personal business and corporate business.With the rapid development of commercial banks' interbank business and the large scale,huge risks are hidden behind the high-yield gains.The supervisory authorities are obviously aware of this problem,and in recent years,successive rectifications and regulation of interbank business have been made.According to related notices,under such a strict regulatory situation,banks and regulatory authorities have continued to gambling,and there has been a deceleration and upward trend in inter-bank business.However,the problem is still difficult to solve.Therefore,it is necessary to study the relationship between the scale and structure of interbank business and the risk of commercial banks,and to guide the commercial banks to develop their interbank business rationally.It is of great practical significance to the future development of commercial banks and the stability of the financial system.There are five parts in the structure of the article.This article first sorts out the motivations and development status of the banking interbank business both at home and abroad.After clarifying the basic concepts and characteristics of the interbank business,it elaborates on the bank risk impact theory and the impact mechanism from the structure of the interbank business and concludes that different types of interbank business have different effects on banks' risks.After recognizing the influence of the industry structure on banks,the article systematically collected and consolidated the total volume and structure of the industry's business in the past nine years,laying a realistic foundation for the empirical part.In general,the article has adopted a combination of theoretical analysis and empirical research to elaborate the impact of the scale and structure of banking interbank business on bank risk exposure.Qualitatively,it mainly studies the reasons for the rise of the current banking industry's interbank business,the current status of development,potential risks,and the impact on commercial banks.Quantitatively,based on the sample of 16 listed commercial banks in China from 2008 to 2016,the dynamic panel model was used to study the impact of the proportion of interbank business operations on bank risk exposure,and further studied the impact of the proportion of the industry structure on bank risks.According to the empirical results estimated by GMM,the larger the proportion of interbank business,the greater the risk exposure of commercial banks;the larger the proportion of new type of interbank business,the greater the bank's risk ex.On the contrary,the proportion of traditional interbank business is related to banks.There is a negative correlation between risks.Finally,according to the empirical results,the paper proposes measures and suggestions on how to improve the security of the interbank business from the bank's own level and the regulatory level.