The Relationship Between Interbank Business And Bank Risk

In recent years,the operating pressure of commercial banks in China has increased,and it is urgent to find new profit growth points.At the same time,the demand for funds in real estate and other industries is rising.In order to circumvent the regulatory restrictions on the capital adequacy ratio,loan-deposit ratio and capital flows,the innovation of interbank business by packaging credit-like assets as interbank assets emerged as the times require,and the scale of business showed explosive growth.Interbank business was originally an important tool for commercial banks to supplement liquidity and optimize asset-liability allocation,while its innovation became a tool for regulating arbitrage.Whether the interbank business disperses or raises the risk of commercial banks is the main concern of this paper.Studying the impact and path of interbank business on commercial bank risk can provide certain theoretical support for the effective prevention and control of the risk of commercial banks in China.In addition,as a major component of China's systemically important financial institutions,research on the sources of the risk of commercial banks can provide a reference for China to prevent and resolve systemic financial risks.This paper mainly uses qualitative analysis and quantitative analysis to explore the impact of interbank business on commercial bank risk.This paper first introduces portfolio theory and financial innovation theory,and sorts out domestic and foreign literature from the perspective of interbank business and commercial bank risk.Then it introduces the development process of the interbank business and the background,mode,supervision and substance of the interbank business innovation,and then qualitatively analyzes the path of the interbank business impact on the risk of commercial banks.Finally,using the data of 31 listed A share commercial banks in China from 2007 to 2017,the empirical research is carried out,and the conclusions of the research are put forward corresponding suggestions for the efficient supervision of China's regulatory agencies and the development of commercial banks.Through empirical research,this paper finds that:(1)commercial banks can reduce risks by carrying out interbank business;(2)interbank business reduces risk by reducing the extent of profit changes;(3)the introduction of Circular 127 weakened the negative impact of buy-back business on commercial banks.