Analysis Of The Impact Of Loan Concentration On Risk And Performance Of Listed Banks

In 2008,in order to cope with the impact of the economic crisis and stimulate economic growth,the government launched the "four trillion plan".A large number of credit funds are pouring into the real estate industry,large enterprises and local financing platforms,which highlights the risk of loan concentration.In addition,in recent years,China's interest rate market-oriented reform has accelerated,the competition among banks has become more and more fierce,and the bank deposit-loan spreads have declined significantly.In order to improve business performance,banks have invested a large amount of credit funds in hot industries and a few large enterprises.In order to fulfill the requirement of the structural reform of the state supply side,it is necessary for listed banks to optimize the credit structure which is highly centralized at present.In order to correctly understand the impact of loan concentration on Listed Commercial Banks in China,and provide theoretical reference for optimizing the credit structure.Taking 21 listed banks as samples,this paper explores the relationship between loan concentration and operational risk and performance of listed commercial banks.Based on the theoretical analysis of the impact of loan concentration on the performance and risk of listed commercial banks,this paper makes an in-depth analysis of the characteristics of loan industry concentration and customer concentration from 2010 to 2017,and uses empirical analysis to verify the impact of]oan industry concentration and customer concentration on Listed Commercial banks.This paper draws the following conclusions.Firstly,the improvement of loan concentration will lead to higher risk for listed banks.Secondly,listed commercial banks concentrate credit funds on a few customers,which will erode bank profits.Thirdly,the concentration of loan industry will improve the professionalism of listed commercial banks in related industries,provide more professional financial services for enterprises,and obtain higher profits.Based on the theoretical analysis and empirical analysis,this paper argues that listed banks should prevent loan concentration risk by optimizing the existing credit management mechanism,strengthening the control of loan concentration risk,and rationally dispersing the allocation of credit assets.The government and regulatory agencies should promote the decentralized allocation of loans by listed commercial banks from three perspectives:improving the centralized loan supervision system,establishing information sharing mechanism and improving the guarantee system for small and medium-sized enterprises,so as to prevent the systemic risk of credit centralization in an all-round way.