Research On Loan Concentration,Equity Structure,and Business Performance Of City Commercial Banks

Recently,China's economic development is in an important period of economic growth from pursuing speed to speed and quality.China's urban commercial banks are also expanding their scale and gradually becoming mature,playing an increasingly important role in the financial system.Under the pressure of macro environment,horizontal competition and self-deficiency,urban commercial banks face enormous challenges of transforming development mode and optimizing economic structure.However,some problems have also been exposed in the rapid development.Due to the differences in the regional history,ownership structure and management system of the city commercial banks,their special ownership structure and supervision methods,combined with the intervention of local governments,have led to widespread hidden dangers in the governance structure.In recent years,the governance system has gradually improved,and state-owned enterprises and foreign capital have entered the city commercial banks in large quantities,and the shareholding structure has become more diversified.In the new environment,we shift the focus of research to the relationship between business performance and equity in urban commercial banks,and the mechanism of action between them.Under the background of China's banking system reform,it is very important to explore the relationship between the governance mode,ownership structure and business performance of urban commercial banks in China,which is to optimize the governance mechanism of city commercial banks and improve their business performance.Based on the existing research,based on the existing research,from the multiple dimensions of equity structure,equity concentration,equity nature,equity checks and balances,this paper analyzes the equity structure and management of China's city commercial banks.The status quo of performance,and the inclusion of loan concentration indicators to explore the mechanism of action.By constructing an empirical model to examine the mutual influence mechanism,it proposes policy recommendations for improving the equity structure of China's urban commercial banks,improving the governance mechanism,and business performance.In the end,it is concluded that the more concentrated the equity,the more likely the major shareholder opportunistic behaviorwill have a bad impact on the bank's business performance.The impact of the nature of equity is not obvious.Advanced management methods require a period of time to produce qualitative changes that cannot be immediately reflected.The more concentrated the equity,the easier it is to form an associated loan that has a negative impact on performance.And in a certain sense,it is proved that the change in the relationship between the equity structure of the city commercial bank and the business performance is sometimes transmitted through the concentration of loans.