Empirical Study On Sustainable Development Of Chinese Commercial Banks Based On Panel Data Model

Finance is the core strength supporting national economic development.As the main part of China's finance,the banking system provides channels for capital flow and financing.Commercial banks are the mainstay of China's banking system.The commercial banks' main operating mode is to absorb deposits,release loans,accumulate capitals,give Short-term loans which are tied up for the long term,and provide a certain amount of funds to the government,enterprises and individuals to promote the development of the national economy.However,the regulatory data released by the China Banking Regulatory Commission for the fourth quarter of 2019 for financial indicators of banking financial institutions show that the special mention loans for commercial banks was 3.76 trillion yuan,the non-performing loan ratio was1.86%,and the core tier one capital-ratio for commercial banks was 10.92%.According to the report,China's commercial banks have a high bad debt rate and a low core tier one capital-ratio.Since these two indicators are important core data indicators for bank supervision,they directly reflect the bank's solvency,public reputation,and ability to resist risks.The current high non-performing loan ratio and capital adequacy ratio have caused China's commercial banks to pay more capitals and costs when competing with foreign commercial banks,which undoubtedly resulted in falled competitions and increasing business risks.It is precisely because commercial banks are of great significance to the stability,health,and sustainable development of the national economy.Therefore,studying the sustainable development level of Chinese commercial banks has very important theoretical and practical significance.The article consists of four parts.The first part systematically expounds the research background,significance and relevant literature of the sustainable development theory of Chinese commercial Banks,points out the direction for the further research of the thesis,and lays the theoretical foundation;the second part mainly discusses the related theories of sustainable development,Constructing a theoretical framework for the research and analysis of the thesis;the third part counts some important regulatory indicators of commercial banks in each quarter of2012-2019,and researches the current situation of the sustainable development of commercial Banks,enriching the theoretical structure of the thesis;the fourth part uses the panel data model to research the sustainable development level ofcommercial banks.By establishing a panel data model for 28 commercial banks,the following conclusions are obtained(1)The scale of assets is a very important determinant for the sustainable development of Chinese commercial banks.The difference in the structure of commercial Banks is the primary factor that causes the gap between large commercial Banks and small and medium-sized commercial Banks;(2)Capital adequacy ratio-CAR has a significant impact on the sustainable development level of Chinese commercial banks;(3)There is a significant correlation between return on assets-ROA and the sustainable development level of commercial banks.The main innovations of this thesis are:(1)This thesis adds the virtual variable of the category of the commercial bank as an explanatory variable and makes a classification regression of different types of commercial Banks to make the research more detailed and explore the correlation between the sustainability of commercial banks and their categories;(2)The panel data model was used to analyze and measure the sustainable development level of 28 selected commercial Banks,and an empirical study was conducted.Compared with the single-section data model,the advantages of the panel data model are as follows: in the panel data model,the precision of estimator will increase when the observed values increase;the panel data model can provide more comprehensive dynamic information.The data of 28 commercial Banks from 2008 to 20168 were selected for classification regression.(3)Compared with other similar theses,the data selected in this thesis have a longer time span,more samples,and are more representative because of the selected famous and unfamous Banks.