Research On The Effect Of Cross-regional Management Of City Commercial Banks

As an important part of China.s banking system,the development of city commercial banks has received attention from all walks of life.In the process of cross-regional operation,city commercial banks have achieved rapid expansion of asset size,number of outlets,and scale of employees,relying on their local resource advantages and scale priority.However,cross-regional operations of city commercial banks have also brought about many new problems,such as low efficiency of regional resource allocation and accumulation of internal risks.The city commercial banks themselves and the regulatory authorities have paid attention to the effects of cross-regional operations.Based on the general situation and theoretical analysis of the cross-regional development of Chinas city commercial banks,this paper analyzes the effects and influencing factors of cross-regional development.This paper selects 34 city commercial banks in China as research samples,and divides the cross-regional operation level into geographic expansion level and decentralized expansion level.Geographic expansion mainly indicates the scope of expansion of cross-regional operations.Decentralized expansion mainly indicates the degree of dispersion of branches in different regions.The paper ixses the fixed-effect model to analyze the impact of city commercial banks,cross-regional development on their profitability and risk level,and constructs regional dummy variables to explore the impact of regional differences on cross-regional management.The research results show that the improvement of the level of geographical expansion has a positive effect on the improvement of the city commercial banks'operation effect.The level of decentralized expansion has a negative impact on the operation effect of city commercial banks.Due to the geographical location of each city commercial bank,the effect of its cross-regional operation is also different.In order to ensure the robustness of the empirical results,this paper uses the variable substitution method to test,and the conclusion is still valid.According to the empirical results,this paper puts forward suggestions from the two levels of regulatory agencies and city commercial banks.Regulators need to urge city commercial banks to improve the scientifie nature of cross-regional business decisions and rationally plan the layout of cross-regional operation and development;city commercial banks themselves need to rationally choose cross-regional development strategy,clarify their own positioning and focus on risk management.