The Influence Of Loan Concentration On The Risk Of Commercial Banks

In recent years,the financial reform has brought about marketization of financial market.On the background of the marketization of financial market,the major banks put more credit resources to a small number of customers,a few industries and minority area under the drive of interest and the influence of herd behavior.Credit concentration has its rationality.On the one hand,that putting the credit resources concentrated to a small number of customers is in line with the Principles of market allocation of resources.It can promote the development of the large enterprises as well as cultivate the high-quality customers for the banks.On the other hand,in the case of limited resources,the loan concentration guarantees the development of some key industries and important areas.However,the excessive concentration of bank loans also causes the problem of risk accumulation.This paper analyzes the present situation of commercial banks' loan concentration and risks by horizontal and vertical comparison,and focuses on the theoretical exposition of the impact of commercial bank loan concentration on its risk.Then,this paper uses the loan-related data of China's listed commercial banks from 2007 to 2015 to establish the panel model,The customer concentration is calculated by the loans accounted for the proportion of the net capital calculation of ten largest commercial bank's customers.And summarize of top ten industries accounted for the total loan amount of the proportion of the square estimates the regional concentration and industry concentration.The bank non-performing loan ratio is used to measure risk.At the same time,in the regression model,the introductions of GDP and bank size are as two control variables.This paper draws the following conclusions: China's commercial bank loan concentration has a significant impact on its risk,but there are differences for the impact of three types of bank risk.Regional concentration and the state-owned commercial banks is inversely proportional to the joint-stock commercial banks,urban commercial banks is a positive relationship,which is the city commercial banks to focus on the degree of concentration.The customer concentration has a positive impact on the risk of state-owned commercial banks,and the impact on the risk of urban commercial banks is negative.The concentration of banking industry has an impact on the risk of joint-stock commercial banks and urban commercial banks,and all are positive changes.This study can not only expand the theoretical basis of loan concentration,and also put forward countermeasures and suggestions to the risk of excessive concentration of lead on the basis of theoretical and empirical analysis,which has important significance on the stability development of commercial banks.This paper argues that commercial bank loans to prevent too concentrated risk can focus on the following five aspects: perfecting the supervision index system and legal supervision system,constructing of credit guarantee system,optimizing the credit structure and developing differentiated credit policy,developing syndicated loans and building a comprehensive risk management system.