Reach On The Influencing Factors Of The Efficiency Of Urban Commercial Banks Under The New Normal

As the core strength of the banking industry after the state-owned commercial banks and joint-stock commercial banks,urban commercial banks play an important role in the prosperity of the urban collective economy and individual economy.After 20 years of development,urban commercial banks have adopted business innovation,geographic expansion and attracting strategic investors to achieve diversified development.In turn,it can improve the management level of urban commercial banks,decentralize operational risk and improve operational efficiency.In the past three years,with the further deepening of China's macroeconomic growth slowdown,market-oriented interest rate reform and financial disintermediation,the economy of our country presented the characteristics of "new normal".Slowdown in economic growth have made urban commercial banks which have small market share,weak profitability,low asset quality and lack of technological innovation ability face more severe challenges.Weather urban commercial bank diversified development model can adapt to the economic development needs of the"new normal",weather there are changes in the efficiency of urban commercial banks before and after the development of the micro economic environment.To solve these problems,it has certain practical significance to promote the sustainable development of urban commercial banks.This paper focuses on the macroeconomic background of the "new normal" in China,and explores the impact of diversification on the efficiency of urban commercial banks when the economic growth rate is slowing down.This paper contrasts the impact of business diversification,geographic diversification and equity diversification on the efficiency of urban commercial banks under the background when macroeconomic has changed.After that,the author provides theoretical basis and constructive recommendations for the diversified development of urban commercial banks under the new normal.This paper is divided into five chapters.The first chapter introduces the research background,purpose and significance,research framework and methods of the study.In the second chapter,firstly,the paper defines the concepts of "new normal",diversification and efficiency of urban commercial bank.Secondly,the author writes up existing research of diversification and the efficiency of urban commercial banks and analyzes the role of logic about diversification and the efficiency of urban commercial banks.Thirdly,"new normal" is put into the analytical framework and hypotheses are proposed.In the third chapter,we review the development of urban commercial banks in china,and do descriptive analysis about diversified status of urban commercial banks.In the fourth chapter,empirical analysis is done.Based on the financial data of 110 urban commercial banks during 2008 to 2014,we calculate the frontier efficiency of sample banks and use static panel data regression model to test our hypothesis.This chapter focuses on the changes of business diversification,geographic diversification and equity diversification on the efficiency of urban commercial banks before and after the macroeconomic change.The fifth chapter draws the conclusion according to the theoretical analysis and the empirical results,and puts forward the relevant policy recommendations.The main conclusions of this paper are as follows:Firstly,as an important indicator of the innovation ability of urban commercial banks,business diversification can effectively improve the operational efficiency of urban commercial banks in the "new normal".Secondly,before the macroeconomic change,geographical diversification can improve operational efficiency of urban commercial banks,and trans-regional level should be established based on the actual capacity of each urban commercial bank.In the"new normal",trans-regional operation cannot improve operational efficiency,and blind trans-regional operation can cause operational efficiency decrease.Last but not least,before the macroeconomic change,concentrated equity contributed to enhance the efficiency of urban commercial banks.However in the"new normal",the effect is proved to be contrary.According to the research above,this paper puts forward some simple policy recommendations.In the "new normal",trans-regional level of urban commercial banks should base on their own fact.By optimizing the business structure,urban commercial banks should change the consumptive and extensive mode in the past,and develop intermediate business to improve profitability.In addition,urban commercial banks should optimize the equity structure by increasing capital.In this way,urban commercial banks can realize the win-win result in the introduction of capita,intelligence and technology.