The Fragility Assessment Of The Central And West City Commercial Banks

The banking system is the most important part of the financial system, healthy development of banking system has a crucial role in promoting the steady growth of national economy. The global financial crisis let us see that the bank system is so fragile. The bank system fragility is a prelude to the banking crisis eruptions. City commercial banks are organized on the basis of urban credit cooperatives. Having developed for more than ten years, city commercial banks accomplished great achievements, and even some city commercial banks’ core indicators have been close to or reached the average level of the international advanced banks. In recent years, our country proposed some development, such as "Western development", "Rise of central China" and "The Belt and Road", the city commercial banks in the central and western regions played a key role in promoting local economic development, as well as helping local small and medium-sized enterprises financing. In addition, Because of the special situation of our country, there are significant differences in regional development, also caused the different of fragility status. In this context, it is necessary to research the fragility status of city commercial bank in the central and western regions.18 city commercial banks in the central and western regions are selected in this paper,the sample covers the north, South, southwest, northwest four regions, which is to representative fragility status of city commercial banks in the central and western regions. The main content is follows:(1) Introducing the development of the city commercial banks in the central and western areas, as well as the fragility status. And summed up it’s development path;(2) Analyzing the internal causes and external causes of the fragility of city commercial banks in the central and western regions;(3) Using factor analysis and gray correlation analysis method, evaluated and analyzed the fragility of 18 sample banks in 2008-2014;(4) According to the empirical results, and combined with the cause analysis, presents the countermeasures and suggestions to reduce the fragility of the city commercial banks in the central and Western China.The main conclusions are:(1)The fragility of city commercial banks is not only from the internal factors, but also closely related to the development of local economy;(2)the fragility of the central and western city commercial banks are mainly in the fragility of the asset quality, capital condition fragility, capital supplement pressure, and the operational risk four levels;(3)Bank of Beijing, Baoshang bank and Luoyang bank ranked by the front; bank of Changsha, Huishang bank,Bank of Chongqing, Bank of Chengdu, and Fudian bank ranked in the middle; Bank of Ningxia, bank of Lanzhou and bank of Qinghai ranking for a long time at the bottom. Overall view, the degree of fragility of city commercial banks show obvious regional differences, city commercial banks in the central and southwest regions is lower than the southwest region.