Research On The Impact Of Interbank Business Development On China's Bank Risk-taking

In recent years,all kinds of innovative business represented by interbank business ushered in a period of rapid development.As an important part of financial institutions,banks' interbank business showed explosive growth as well.The interbank business,originally aimed at regulating liquidity,has gradually become a tool for commercial banks to evade credit supervision and pursue profits.With the expansion of interbank business,banks have exposed a large number of potential risks and operational loopholes.Especially after the "money shortage" incident in June 2013,regulators strongly realized that the operation risk,credit risk and liquidity risk caused by the large-scale expansion of interbank business have had a serious impact on the risk-taking of commercial banks,and thus issued a series of regulatory policies to restrict the business from all aspects.However,while the scale of business in the industry has been reduced and gradually standardized,some commercial banks continue to use innovative and edge-ball methods to avoid financial supervision in order to achieve profitability.Therefore,the development of interbank business still has a significant impact on the risk-taking of commercial banks in China.To truly achieve effective monitoring of interbank business,regulators need to continue to strengthen the implementation of relevant policies to help commercial banks return to the original intention of supporting the real economy.Therefore,this paper has theoretical and practical significance based on the impact of the development of interbank business on the risk-taking of commercial banks.In this paper,51 commercial banks in China are selected to explore the impact of interbank business development on their risk-taking by putting forward research hypotheses and empirical tests.The researchhypothesis first puts forward the impact on the risk-taking of banks from two aspects: the scale of interbank business and its risk characteristics,and then analyses the effect of heterogeneous factors on the risk-taking of interbank business.Empirical test chooses unbalanced panel data from2008 to 2017,and uses system GMM method to carry out risk-taking of Commercial Banks in China according to the research hypothesis.Regression analysis was performed.The empirical results show that in terms of business scale,the interbank asset business has a positive correlation with bank risk-taking,while the interbank liability business has a negative correlation with bank risk-taking.Taking interbank assets as the research object,this paper classifies the risk characteristics and concludes that traditional interbank assets are negatively correlated with bank risk-taking,while emerging interbank assets are positively correlated with bank risk-taking,and the latter has greater impact on risk-taking than the former.Then,from the perspective of interbank assets,we can conclude that the existence of heterogeneous factors in commercial banks will have different impacts on the risk-taking of interbank assets.Finally,according to the empirical results,effective countermeasures and suggestions are put forward from the two levels of commercial banks and regulatory agencies.