Analysis Of Factors Affecting The Performance Of City Commercial Banks' Cross-regional Operations

As an important part of China’s financial institution system,city commercial banks have increased their proportion in China’s financial market with the continuous growth of China’s economy.Cross-regional operation,as the only way for city commercial banks to expand their business scale,expand their business scope,and break down geographical restrictions,although they encountered some setbacks in the development process,but with the continuous improvement of the regulatory system,more and more city commercial banks began to choose cross-The provinces and municipalities conduct cross-regional operations through mergers and acquisitions,equity acquisitions,new establishments of branch offices,and establishment of village banks.At present,most of the city commercial banks in our country have chosen cross-regional operation.While they have the characteristics of specific cross-regional operation mode and regional selection,there are also many problems.In terms of business performance,the assets and liabilities of city commercial banks are small,but the growth rate is relatively high,the ability to resist risks is strong,and the level of management needs to be further enhanced.Choosing cross-regional operation has both positive and negative effects on the performance of city commercial banks.How to improve the performance of city commercial banks in this process has important research significance.Based on the four aspects of efficiency,liquidity,safety and growth of city commercial banks,this paper constructs a performance measurement evaluation system by using four financial indicators:total return on assets,loan-to-deposit ratio,non-performing loan ratio and total asset growth rate.The paper analyzes the impact of the macroeconomic environment of the city commercial bank,the bank’s own asset scale,human resources,equity structure and regional factors in the inter-regional operation process of the city commercial bank.After comprehensive consideration,this paper finally selects the total return on assets(ROA),loan-to-deposit ratio(ORD),non-performing loan ratio(BLR),and total asset growth rate(TAGR)as the explanatory variables,the registered city economic level(RE),whether the city commercial bank is listed(IPO),the degree of inter-regional dispersion(RD),the proportion of employees with bachelor degree or above(XL),the natural logarithm of total assets(LNC),and the natural logarithm of branch numbers(LNB)are regression models.For each explanatory variable,the gross domestic product(GDP)of the year was the control variable,thus constructing four smooth panel data regression models.According to the empirical results,the paper concludes that the better the domestic economic situation and the larger the GDP,the higher the asset liquidity and safety of the city commercial banks will be,but the impact on their efficiency and growth will be affected.In the process of selecting cross-regional operations,the lower the economic level of the place of origin,the better the bank’s efficiency;the higher the degree of cross-regional operation,the greater the operational risk,but it has no significant impact on the efficiency,liquidity and growth of banks;the choice of listing by the city commercial bank will help the improvement of its efficiency,but it has no significant impact on the liquidity,safety and growth of the assets;the higher the proportion of undergraduate’s and above in the employees,During the operation process,it has a positive effect on the growth of the city commercial bank and the safety of the assets,but it has no significant impact on the efficiency and asset liquidity;the asset scale of the city commercial bank has a positive effect on its efficiency and growth,but it will affect the assets.In contrast,increasing the number of branches will increase the liquidity of assets,but will reduce their effectiveness and growth.Asset size and the number of branches on the safety of bank assets will not be affected.