Research On The Influence Of Business Diversification On Business Risk Of Commercial Banks In China

At the present stage,China's interest rate marketization is completely completed.The influx of foreign banks has further aggravated the competition pattern of the banking industry and squeezed the development space of our commercial banks.The rise of internet finance has changed the financial industry,and has caused a certain impact on the business development of our commercial banks.The competition mechanism of foreign banks and internet finance has forced our commercial banks to make business transformation.In order to meet all the challenges and improve their comprehensive competitive ability,our commercial banks have gradually made two transitions in business development,expanding other innovative business outside the traditional business and expanding the sources of income.At the same time,commercial banks have been paying more and more attention to the influence of business diversification on their business risks.Because of the difference of the risk level of the various components of diversified business and the different risk management level of each commercial bank,the business diversification has no definite conclusion on the influence of commercial bank's operation risk.Based on the data model of 16 listed commercial banks in China,this paper analyzes the influence of business diversification of commercial banks on the operational risks of commercial banks in order to provide useful suggestions for the diversified development of commercial banks in China.This paper first combs the concept of business diversification and commercial bank operating risk,expounds the theoretical basis of the diversification of business and its impact on the bank's operating risk theory,for the subsequent quantitative analysis of the theoretical preparation.Then the paper analyzes the development of diversified business of commercial banks in China,and points out the problems existing in the process of development.On this basis,the empirical model of the influence of banking diversification on bank risk is constructed,and the fluctuation of income is decomposed.Finally,using Stata12.0 software to analyze the 2007-2016-year panel data of 16 listed commercial banks in China.The main conclusion of this paper is that the diversification of commercial banks in China is beneficial to reduce the risk of bank operation,but its influence may be weakened by the bank's own conditions and the alienation risk,so that the risk dispersion effect of state-owned banks and joint-stock banks is different,the results show that the state-owned banks More customer resources and technical advantages,through more lines of business and a wide range of customer resources to achieve economies of scale,synergy and diversification effect,so the state-owned banks than the joint-stock banks spread risk more significant role.In view of the low interest rate business development in China and the large space of business diversification,commercial banks should clear up their own development barriers,increase business innovation,dig into market demand,and strive to improve the level of business diversification.In the face of the unreasonable and unstable factors in the process of diversification,we should strengthen the risk management and control,guide the commercial banks to develop prudently and raise the consciousness of risk control.In view of the different effects of the diversification of the risk of the state-owned banks and the joint-stock banks,the banks should establish their own advantages,not blindly enlarge the scope of business in the process of diversification,grasp the core competitiveness,jump out from the cage of the development of homogeneity,and establish a diversified development path in line.