| China's economic system has ushered in a profound transformation,which promoting China's economic development to obtain remarkable achievement,the scale of China's commercial banks has continued to expand.At the same time,commercial banks are faced with a new round of challenges due to factors such as the transmission of real economic operating pressure to the banking industry,the steady advancement of RMB interest rate liberalization,and the sudden rise of Internet Finance.Faced with severe external pressures,in order to achieve stable and continuous growth of profits,non-neutral risk commercial bank managers often seek greater profits in ways that endure higher risks,or reduce risks by reducing profits.Improveing efficiency and controlling risk are two eternal topics studied for commercial banks,It will be difficult to accurately reflect the true level of efficiency of a bank if ignoring the level of risk when measuring the efficiency of a commercial bank.With the outbreak of the Subprime Mortgage Crisis,there is an increasing number of studies that include risk factors as endogenous variables in commercial banks' efficiency measurement systems.Therefore,this paper will study the profitability of commercial banks under risk constraints,verify the mechanism of risk factors on bank efficiency,reasonably measure the efficiency of commercial banks,and empirically analyze the factors affecting bank efficiency,and provide recommendations for the management of commercial banks.This article starts with the logical concept of “Introduction—The definition of efficiency and risk concept and the use of theory for reference—The mechanism of risk versus efficiency — The measurement of efficiency through risk adjustment — The analysis of efficiency influencing factors—Conclusions and recommendations”,The main contents include:(1)Analyzing the mechanism of risk factors on the efficiency of commercial banks,propose corresponding research hypotheses,and conduct statistical analysis on bank risks.(2)regarding the risk factors as endogenous variables in the efficiency measurement model,and the Translog Stochastic Frontier Function was applied to 90 commercial banks(including 6 state-owned commercial banks,10joint-stock commercial banks,55 city commercial banks,and 19 farmers.Businesses)2011-2016 unbalanced panel data for efficiency measurement.(3)Using the Tobit model to analyze empirically the factors that influence the profitability of commercial banks from the three dimensions of property rights,market structure,and bank size.The main conclusions of this paper are as follows:(1)The credit risk has asignificant negative effect on the profit efficiency of commercial banks.The capital risk has a significant positive effect on the profit efficiency of commercial banks,which supports the research hypothesis between bank risk and efficiency.(2)The statistical analysis of commercial bank risk during 2011-2016 shows that the credit risk of China's commercial banks shows an overall upward trend,and the trend of changes in capital risks is relatively flat.(3)The profitability of commercial banks will be overestimated without considering risk factors,: Compared with credit risk constraints,profit efficiency is generally overestimated by 3.352%.Compared with capital risk constraints,profit efficiency is generally overestimated by 1.213%.Therefore,when measuring the efficiency of commercial banks and analyzing the influencing factors,the risk-adjusted commercial bank efficiency should be considered.(4)The empirical results of the factors affecting the bank's efficiency show that the more property rights are state-owned,the higher the efficiency of commercial banks;the higher the market share,the higher the efficiency of commercial banks;the higher the degree of bank concentration,the worse the efficiency of commercial banks.Impact;Excessive scale of bank assets will also have a negative impact on efficiency due to diseconomies of scale.Based on the above findings,this paper proposes the following four recommendations:(1)Strengthening and enhancing the risk management capabilities and level of commercial banks.(2)Reforming In-depth and orderly the property rights system of state-owned commercial banks.(3)Optimizing the financial market environment to maintain a fair and good competitive order.(4)Expanding the business banking channel to achieve connotative growth. |
