Research On The Influence Of Diversification On The Performance Of Commercial Banks

The commercial banks are interested in diversified and integrated management with great enthusiasm for long-term.Under the unfavorable factors of macroeconomic downturn,the Internet financial impact,financial disintermediation accelerated and the narrow of net interest margin,the commercial banks for diversification is given high expectations to increase the income of enterprise,decentralize the operational risks,and ultimately to improve the operating performance.The problem is that whether the diversification strategy of commercial banks can really enhance the academic has been controversial?Therefore,under the background that Chinese commercial Banks are competing to implement the diversification strategy,it is of great theoretical and practical value to deeply study the impact of diversification on the business performance of commercial Banks.Based on the diversification theory and analyzing the status quo of commercial banks China diversification,this paper build a statistical model,using the balance panel data of2007-2017 of 25 listed commercial banks,an empirical test of business diversification,assets and liabilities diversification on the performance of commercial banks.The empirical test results of full sample data show that the commercial banks' business diversification and liabilities diversification failed to significantly improve the performance of commercial banks,the diversification of assets of commercial banks have a significant impact on the performance;the empirical results show that packet data in large bank business diversification can significantly enhance the performance,but the small and medium business banks' business diversification failed to improve the operating performance.Therefore,we suggest that large commercial banks should give full play to promote the role of diversified business with their own resources moderately;and the small and medium-sized commercial banks should be cultivating the local market and serve the local enterprise,not blindly carry out diversification.