Empirical Analysis Of Bond Investment And Banks Risk

Based on WIND database?China bond network and the financial statement information disclosed by commercial banks to study the impact of bond investment on the operating risk of Chinese commercial banks.This article innovation in donging quantitative analysis about the influence of commercial banks investing bond on its risk management,at the same time,we divided the sample into three sample as large commercial banks?joint-stock bank and city commercial banks to carry on the comparison and analysis among them.In addition,we also divided the sample into the sample before the year of 2013 and the sample after the year of 2013 to further analyze when the commercial bank conduct bond in vestment,how does it work on banks'risk management differently.This paper combines static panel data model and dynamic panel data model in empirical analysis to ensure the reliability of the results.Research results show that Chinese commercial banks conducting bond investment may not conducive to its risk management,especially for the large commercial banks.Increasing assets would reduce the risk of insolvency no matter what size the bank is.Comparing the results between before the year of 2013 and after the year of 2013,we found that before 2013,Banks Conducting bond investment would benefit its risk management.After the year of 2013,China's economy has entered the'new normal',the risk index characteristic of commercial banks have been continuously weakened.It is worth noting that commercial banks conducting bond investment after 201 3 cannot improve their risk management.Accordingly,we believe that bonds quality are higher before 2013,increasing interest income of bond investment actually benefit to the risk management for commercial bank.After 2013,while the bond market development rapidly,the bond quality declined,which increased the risk of commercial banks to invest bonds.In addition,the commercial banks are working to expand the bond underwriting business where the customer base is derived from its original credit customers,part of the commercial banks are not only the underwriters but also the investors,the bond investment department in the commercial bank cannot make decision independently,which is not conducive to commercial bank for bond investment risk management.