| Recent years, as the banking companies' size keep going up, their affiliates' number expending rapidly of which business become diverse and are located in various countries. The complexity of the banking organization not only poses a challenge on banking company itself, but also enlarges the possibility of potential systematic risk in the financial system by raising the systematic risk, which gives the regulator a question on how to recognize and regulate such complexity.However, in the first place, there is no consensus on what is complexity. What properties define the complexity of a commercial bank? How to assess those properties and conduct a proper measurement on complexity? What are the existing means that measures commercial banking system's complexity? Is today's regulation sufficient and effective for the evolving complexity of commercial banks in China? Numbers of issues need to be resolved and the questions need to be answered.In the theoretical part, this paper starts on the complexity of the commercial banking system by discussing the existing measurements of the complexity of a system. Then, a 3-dimension banking complexity approach was discussed in terms of the measurement of the commercial banking system complexity in China. It is showed in this part of the paper that analyzing the complexity of the commercial bank in China is achievable.In the empirical part, organizational complexity, business complexity and geographic complexity was defined and measured. This paper analyzes the above complexities of 163 commercial banks in China from 2005 to 2015 with the data from Bankscope database and public annual report and positive results are showed in plots and charts, all of which are discussed and come to conclusions.In conclusion part, this paper concludes the evolution of the complexity of China commercial banking system in the past 10 years, therefor provides a view of complexity in banking regulation. |
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