Research On Cross-regional Business Model Of City Commercial Bank

In recent years,China's economic growth has declined,and China's economy has entered a new era of development quality from its original pursuit of growth.The state has placed the focus of economic development on the quality of pursuing development.This change has had a tremendous impact on China's economic development.China's banking industry is also facing greater challenges in such a large environment.As an important part of the banking industry,urban commercial banks are gradually developed by local urban credit cooperatives.In recent years,urban commercial banks have achieved unprecedented development.Among them,cross-regional operations have become more and more choices for city commercial banks.The way to develop,and choose a reasonable cross-regional development model is the key to the success of cross-regional operations.The trend of cross-regional operation of city commercial banks began in recent years.There are few researches on its cross-regional business model,and most of the research is based on the position of the city commercial bank headquarters,and it is less targeted at its branches in different places.research.Therefore,this paper intends to explore the risk management issues of urban commercial banks in cross-regional development from the perspective of off-site branches,and provide reference for the cross-regional operation of city commercial banks to understand risks and manage risks.This study takes Beijing Bank and Huishang Bank as examples to analyze and compare the different modes of urban commercial banks in cross-regional operations and the regulatory strategies they should adopt.The main research is as follows:(1)An in-depth study of the status and risks the city commercial banks are facing in the cross-regional business.Pushed by the internal and external factors,the city commercial banks are expanding powerfully and quickly and have make remarkable achievements.(2)Analyze the cross-regional business model of Bank of Beijing and Huishang Bank.The research results show that the process of directly establishing the branches of different places in the process of trans-regional confrontation has three problems: higher liquidity risk,lengthy risk corresponding chain,and imperfect branch system.(3)Proposing to strengthen cross-regional operational risk management of city commercial banks.Starting from the risk status and management focus of Bank of Beijing Bank and Huishang Bank,and facing the practical problems that urban commercial bank banks need to solve,it is proposed that cross-regional operations should choose their own business model,market segmentation and positioning,and sound cross-sector.The risk management system of regional operations and the flexible risk prevention and control system in stages are expected to benefit the risk management of cross-regional operations of urban commercial banks.