An Empirical Analysis Of The Impact Of Interbank Business Development On Bank Risks

In recent years,China’s interbank business is developing rapidly.By the end of 2015,16 listed banks assets balance is 11.23 trillion yuan,interbank assets accounted for 9.65% of total assets.Interbank assets have become an important part of the assets of commercial banks.Due to the need to circumvent regulation,to escape capital constraints,and to pursue profit growth,commercial banks have vigorously promoted the development of interbank business.Followed by a series of risk exposure and operational problems highlighted.Therefore,it is very important for the development of commercial banks to establish a correct and clear understanding of the nature and status of interbank business.Based on the perspective of interbank business,this paper analyzes the risk of commercial banks.Based on the balance panel data of 50 commercial banks in 2008-2015,the dynamic panel model was established.In this paper,the bank risk Z value is used as the explanatory variable and the proportion of interbank assets as the main explanatory variable.The other microcosmic individual characteristics of the banks and the macroeconomic situation index of are taken as the control variables.In this paper,we use the system generalized moment estimation method to study the two aspects: the impact of interbank business development on bank risk,and the specific mechanism of interbank business impact on bank risk.Empirical analysis shows: First,the development of interbank business will increase the risk of banking.The proportion of interbank assets is significantly related to the size of the bank risk,the higher the proportion of interbank assets,the greater the risk.In the process of carrying out the interbank business,due to the complexity of the model,regulatory difficulties,maturity mismatch,it is easy to lead to credit risk and systemic risk.Second,the bank risk has a strong continuity.Bank microcosmic characteristics have a significant impact on its risk: The higher the deposit and loan ratio,the greater the return on assets,the greater the risk of banks.Because the deposit and loan ratio is too high will lead to deterioration of bank liquidity,high-yield banks are more inclined to take a more radical business strategy.The macroeconomic situation also has a significant impact on bank risk: The greater the per capita GDP,the better the economic situation,the smaller the risk of banks.Because in the economic boom period,the employment situation is good,the net value of the enterprise to improve the risk of default to reduce the stability of bank credit assets.The greater the liquidity of the currency,the greater the risk of the bank.Because when liquidity excess,it is easy to lead to asset price bubblesand excessive competition between banks,expanding the bank interest rates and credit risk.Thirdly,the impact of the proportion of interbank assets on bank risk has its specific mechanism.The development of interbank business has an impact on the yield of bank assets,thus affecting the bank risk.Although the development of interbank business can increase the economic profits of commercial banks,it will reduce the bank’s asset yield,adverse effects on bank performance it will reduce the bank’s return on assets and adversely affect bank performance.Compared with the loan business,interbank business is an inefficient profit model.The development of interbank business is a forced choice under deposit and loan control.