| Since 2008, China implemented a moderately loose monetary policy in order to combat the global financial crisis and boost the economy. The huge amount of credit expansion makes the problem of commercial bank's loan concentration appears gradually. With the increasing competition in financial institute, China commercial banks which mainly engage in traditional credit management may bring more severe loan concentration trend in order to pursue their own benefit maximization. In the short term, loan concentration accords with national policy orientation and brings benefits to the banks, but it can pose huge risks in the long run. Therefore, the correct understanding of our commercial bank's loan concentration and analysis of impact on the benefits and risks help to precaution and defuse the crisis triggered by loan concentration, provide reference basis for financial regulation, and have great significance to our financial economic sustainable balanced development.In this context, the paper focuses on the measure of commercial bank's loan concentration and its impact on the benefits and risks. Firstly, the paper summarizes the theory of commercial bank's loan concentration at home and abroad and recognizes loan concentration has benefits and risks effects. This paper will study commercial bank's loan concentration from benefits and risks.Secondly, this paper studies the status and causes of our commercial bank's loan concentration. In the status analysis, the thesis describes the characteristics of loan concentration in three aspects of industry distribution, region distribution and large customer distribution. In the cause analysis, the thesis explores the reason of our commercial bank's loan concentration from macroscopic and microcosmic points.Again, on the basis of these, this thesis adopts modified Herfindahl index to evaluate loan industry concentration ratio and loan geographical concentration ratio, adopts top 10 customers share to evaluate loan client concentration ratio to measure loan concentration of our listed commercial banks which have been divided into three groups of homogeneous similar banks.Finally, using the result of measurement above, this thesis selects data from benefits and risks to construct the indicator system. The paper chooses panel data of our listed commercial banks from 2004 to 2009, builds panel data model to examine the impact on the benefits and risks. The result indicates that different kinds of commercial banks.Based on the above empirical analysis results, this paper offers three policy recommendations as follows: First, perfect legal supervision security system of loan concentration. Second, commercial banks Change the credit management mode and avoid loan concentration risks. Third, construct external environment which help to scatter loan concentration risks. |
