An Empirical Study On The Impact Of Commercial Banks' Inter-bank Business On Risk

The economy and finance have entered the new normal.Under this background,the rate of profit growth of commercial banks has slowed down,the quality of assets has fallen,and the spread between deposit and loan has narrowed,the quality of assets has fallen,and the spread between deposit and loan has narrowed,so the traditional spread profit model has already faced a severe challenge.In order to find a new profit growth point,commercial banks are more and more interested in the inter-bank business.At the same time,the continuous expansion of inter-bank business also increased the risk of commercial banks.Financial regulatory departments have issued new regulations to regulate the development of the inter-bank business.Therefore,it is realistic and necessary to study the impact of commercial banks5 Inter-bank business on their risk exposure.Based on the dual perspectives of asset side and debt side,this paper selects z-score as the agency variable of bank risk,based on the relevant data of 16 listed banks in China in 2008-2017.Using interbank assets ratio and interbank liability ratio as explanatory variables,this paper uses threshold model and multiple regression to examine the impact of interbank business on the risk exposure of commercial banks.The empirical results show that the interbank assets can reduce the risk-taking level of banks and stabilize bank risk.However,there is a nonlinear relationship between the ratio of inter-bank liabilities and the risk assumption of banks,that is,the interbank liabilities can also reduce the risk of banks,but with the increase of the proportion of interbank liabilities,the impact on the risk assumption of banks becomes smaller and smaller.Finally,this paper puts forward some suggestions on how to carry out the inter-bank business reasonably and promote the healthy and stable development of the inter-bank business market.