Research On The Influence Of Regional Financial Structure On Bank Credit Risk

Since the proposal of the 13 th five-year plan,central government stressed repeatedly to prevent defuse financial risks,and resolutely prevented systemic and regional financial risks.Among them,the most important is to focus on taking precautions and reducing credit risks of banks,and improving and implementing policies to dispose of non-performing assets.In addition,Our country has a vast territory,under the division of large regions,there are differences in financial structure,uneven distribution of financial resources and unbalanced economic development.Moreover,with the innovation of financial instruments and financial products,regional financial structure gradually shows the characteristics of various factors,complex levels and strong correlation,which leads to the enhancement of the potential accumulation of regional bank credit risks,rapid transmission and increased difficulty in early warning.Therefore,in order to prevent regional bank credit,combined with the regional economic development,etc,this paper provides a new perspective from the regional financial structure and study its influence on regional financial risks in bank credit,which not only can put forward effective regional bank credit risk prevention and control of novel suggestion,but also conducive to regional financial stability and regional economic coordinated development goals.This paper describes the regional credit risk of bank through the non-performing loan ratio.Financial correlation ratio,market value of listed companies,bank concentration ratio,indirect financing ratio and other indicators are used to describe the financial structure of a region,and then the level of regional economic development and local financial risk level are taken as control variables to construct a multiple regression model.It is found that,firstly,the regional financial structure does have some impact on the bank credit risk.In the eastern region,the market value of listed companies and the indirect financing ratio are the most significant factors.In the central and western regions,the bank concentration ratio and the indirect financing scale are the most significant factors,and the three factors are negatively correlated with the non-performing loan ratio,which is consistent with the basic hypothesis.Secondly,in the two regions at different stages of economic development,the correlation between the measurement indexes of their financial structures and the non-performing loan ratio of banks is also different to some extent.Third,the fiscal deficit ratio,the control variable,has a significant positive correlation with the non-performing loan ratio in both models.Finally,based on the theoretical and empirical research conclusions,in order to promote the rational development of regional financial structure and strengthen the prevention and control of bank credit risk,this paper puts forward relevant policy Suggestions from the aspects of financial market structure,financial institution structure and financing structure.