Research On The Cross-regional Problems And Performance Of City Commercial Banks

China’s city commercial banks have been renamed from urban cooperative banks.After years of development,they have become one of the most promising financial institutions in China’s banking system.The development of the city commercial bank broke through the monopoly of China’s banking industry,effectively alleviated the serious local financial risks that existed in China,and improved the commercial banking system,which played an important role in the overall reform and development of China’s financial industry.With the increasing competition in China’s financial industry,cross-regional management has become an important model for the development of city commercial banks.This paper focuses on this issue to study the impact of urban commercial banks’ cross-regional development on their business performance.Based on the relevant researches of domestic and foreign scholars,this paper firstly summarizes the cross-regional operation of China’s urban commercial banks,and specifically analyzes the way of cross-regional development and the supervision of the regulatory authorities.In 2009,the relevant department promulgated Document No.143 to relax the market access conditions of commercial banks’ off-site branches.With this policy,this paper examines the impact of urban commercial bank cross-regional development on performance by constructing instrumental variables.The impact of business performance,combined with the case study of Nanjing Bank,found that cross-regional operations are conducive to city commercial banks to expand asset size and diversify risks,but at the same time may increase agency costs.Cross-regional operations have a positive impact on the total return on assets of city commercial banks,but the measurement results are not significant.At the same time,through the case of Nanjing Bank,it is also found that cross-regional operations will help city commercial banks to increase operating income and operating profit,but city commercial banks should pay attention to improving the income structure and avoid excessive dependence on deposit and loan business to obtain income.Finally,this paper puts forward the suggestions based on the model and case analysis for the regulatory bodies and the city commercial banks.The relevant regulatory authorities should prudently supervise and establish more effective regulatory measures,and the city commercial banks should clearly define their own positioning,moderate expansions,find a suitable way for cross-regional operation,improve management capabilities,cultivate relevant talents,and form a differentiated and distinctive development path.