Research On Influencing Factors And Optimization Strategies Of Capital Structure Of Urban Commercial Banks

Commercial banks play an important role in the financial market and are of great significance to the whole financial market.The existence of urban commercial banks has special significance in China’s banking industry and plays an important role in promoting the development of China’s real economy.Over the past two decades,the asset scale of commercial banks in cities across the country has expanded rapidly.At the same time,they have been gradually recognized by the market because they vigorously promote local economic development under the premise of differentiated and characteristic operation.However,from the actual situation,compared with other large commercial banks,urban commercial banks still lag behind and have many deficiencies.Among them,the unreasonable capital structure has become the main obstacle restricting the high-quality development of urban commercial banks.Different from general industrial and commercial enterprises,commercial banks mainly take money as the business object,and their operation is more directly affected by the capital structure.Therefore,it is necessary to study the influencing factors of the capital structure of urban commercial banks and whether the proportion of capital structure is scientific and reasonable.Based on the above background,the main core content of this paper is the influencing factors and optimization suggestions of B city commercial bank on capital structure.This paper begins with a general analysis of the theoretical basis and research results of capital structure at home and abroad,and then summarizes and analyzes the main conclusions and views of domestic and foreign literature through literature review,which can be used as the theoretical basis for the research on the influencing factors of capital structure of commercial banks in City B.the following conclusions are obtained:(1)from the analysis of macro factors,one is from the aspects of economy and policy,Macro factors have a significant impact on the capital structure of city B commercial banks.Second,from the analysis of the external environment,the more fierce the market competition is,the more conducive it is for bank B to actively optimize the capital structure.Similarly,the more mature the capital market,the more types of financing tools and financing methods,and the more channels for B city commercial bank to optimize its capital structure,the more conducive it is for B city commercial bank to flexibly choose financing tools to optimize its capital structure.(2)The operation indicators represented by the scale and profitability of city B commercial bank have a positive role in promoting its capital structure.However,the internal factors represented by excessive concentration of equity and lack of capital management have a significant negative inhibitory effect on the capital structure of city B commercial bank.Finally,through the benchmarking analysis with other excellent commercial banks,this paper puts forward some suggestions on the optimization of capital structure:(1)from the aspect of equity capital structure,improve equity capital by realizing equity diversification,accelerating the pace of listing,strengthening equity supervision,improving governance structure,and improving endogenous financing power.(2)In terms of debt capital structure,city B commercial bank needs to effectively control the asset liability ratio within a reasonable range,improve the operation capacity of debt capital,improve the supplementary channels of debt capital and realize the diversification of debt capital structure.(3)B city commercial banks are typical representatives of many small and medium-sized banks,and the optimization of the external environment is more conducive to the optimization of their capital structure.Therefore,dynamically implement capital supervision,strengthen market constraints,and improve the operation mechanism of the capital market,so as to improve the external environment and broaden financing channels.