The Impact Of Institution Factors On Commercial Banks' Risk In China

This paper discusses the influence of institutional factors on the risk of commercial banks under the background of institutional reform,and constructs a theoretical model of the impact of institutional factors on the risk of commercial banks.Based on the non balanced panel data of 147 commercial banks in China in 2002~2016,this paper empirically analyses the impact of institutional factors on the systemic and non systematic risks of China's commercial banks.The main conclusions of this paper are as follows:(1)The improvement of the institutional environment has a steady and positive effect on the systemic risk of the bank,and the influence of the institutional factors on the non systematic risk is different.Specific performances:the improvement of the government efficiency increases the non systematic risk of the bank,and the quality of supervision is positively related to the risk of the bank bankruptcy.It has a negative relationship with the level of risk asset allocation.The level of corruption control and political stability have improved the level of risk asset allocation.Before the system reform,the negative effect of the deterioration of the institutional environment on bank risk is greater than the positive effect of the improvement of institutional environment on banking risk after reform.(2)In terms of the impact on the systemic risk of Banks,economic liberalization and monetary liberalization are the most significant,the institutional environment is second,the industrial environment is the third,the monetary growth rate and the GDP growth rate are the last.Moreover,industry concentration is positively correlated with systemic risk,and the intensification of industry competition will increase the systemic risk.There is a certain interaction between the monetary freedom and the bourn index,and the internationalization of currency enhances the positive influence of market competition on the systemic risk of Banks.(3)The improvement of the rate of return on assets helps to reduce the unsystematic risk of the bank.The scale of assets is positively affecting the level of the allocation of risk assets and systemic risk,but has the reverse effect on the risk of bankruptcy.The improvement of non interest income can reduce the unsystematic risk,but it has no significant influence on the systemic risk.