Research On Risk-taking Efficiency Of Commercial Banks And Its Influencing Factors

The banking business environment has undergone profound changes at present.The whole industry is facing multiple tests,such as the completion of interest rate marketization reform,economic restructuring,market access liberalization,capital market development,Internet financial shocks and the changeable monetary policy.Throughout the development process of banking industry in recent ten years,commercial banks are facing a more severe transformation period.It is imperative to actively change the development concept,speed up business transformation and business structure adjustment.Efficiency will be the most important work for industry survival and competition.This paper focuses on the efficiency of risk-taking,that is,whether the profit per unit of risk reaches the optimal level.In the previous research literature,scholars only studied risk-taking at the level of "quantity",and did not evaluate the operational benefits behind bank risk-taking,that is,they did not pay attention to the optimization at the level of "quality".This paper will look at the risk-taking behavior of banks from a new perspective.By constructing risk-taking efficiency variables,it will link risk-taking with operational efficiency,and analyze the gap between the actual risk-taking level and the theoretical optimal level of the whole banking industry in China,as well as the reasons for the gap.Based on the data of all types of commercial banks in China from 2011 to 2017,this paper studies the relationship between risk-taking level and profit efficiency of commercial banks in China from both theoretical and empirical levels,and verifies that there is an obvious inverted "U" relationship between risk-taking level and profit.The optimal risktaking level is found by using extreme conditions.After considering the time-varying,we get an optimal risk-taking level curve in time dimension to explore the current business situation in China.Finally,we construct a risk-taking efficiency variable to measure the deviation of actual risk-taking level from the optimal level.This paper examines the factors and mechanisms that influence the efficiency of risk-taking in both internal and macro aspects of banks.The article is divided into five chapters.The first chapter,Introduction.The main contents of this chapter are as follows: firstly,it explains the significance of this study under the research background;secondly,it outlines the research framework on the basis of a brief review of the research ideas and methods,and establishes the innovation and shortcomings of this paper.The second chapter,theoretical analysis and model construction.This paper expounds the relationship between bank risk and profit in detail from the theoretical level,and then puts foRWArd the hypothesis that there is an obvious inverted "U" relationship between bank risk-taking level and profit,and establishes an analysis model.Furthermore,the significance and method of constructing risk-taking efficiency variables are put foRWArd.The third chapter,Empirical analysis results.Firstly,it is proved that the quadratic relation is the best choice in the non-linear relationship.Then,the dynamic panel data are empirically tested by using the system GMM estimation method,and the non-performing loan rate instead of the weighted risk asset rate is used as the alternative variable of the risk-taking level to test the robustness.There are three parts in this paper: static model without considering time-varying,dynamic model with time-varying and factors influencing risk-taking efficiency.Step by step,clearly elaborate the current situation of risk-taking efficiency of commercial banks in China.The forth chapter,conclusion.This chapter summarizes the main conclusions of all chapters,and puts foRWArd suggestions and suggestions on bank management and policy formulation.The main conclusions of this paper are as follows: Firstly,there is an inverted "U" relationship between the level of risk-taking and profit efficiency of banks.Therefore,the relationship between risk level and profit efficiency of banks is not simple linear,but there is an optimum point.Before the risk-taking level does not reach the optimum point,increasing risk will increase profits.When the risk level exceeds the optimum point,increasing the allocation of risky assets will make the marginal profit negative.Secondly,under a certain tolerance,the actual risk level of Chinese commercial banks fluctuates around the optimal level curve.That is to say,under the market-oriented economic structure,banks have been looking for the best advantage of risk asset allocation in order to maximize profits.Third,the factors affecting the efficiency of risk-taking of banks include micro-internal factors and macro-external factors.The impact of financial environment on banks is more significant than that of real economy.Loose money supply,strong demand for funds and higher loan interest rates will make banks more efficient in risk-taking.