A Research On The Influencing Factors Of Regional Commercial Banks' Innovation Ability

China's current economic development speed has changed from high-speed in the past to medium-high speed.Industrial structure upgrade and high-quality development will be the focus of future economic development.The impact of the "three-phase superposition" has continued to deepen.As a pro-cyclical industry,the banking industry is at a historical inflection point.As the economic growth rate continues to decline,the growth rate of the banking industry's assets is also declining even exceeds the GDP growth rate.It dropped to 6.4% in 2018,which was below the year-on-year growth rate of GDP for the first time and has a further downward trend.Regional commercial banks,represented by urban commercial banks and rural commercial banks,are an important part of the banking system.Generally,they have problems such as lack of talent resources,risk management capabilities,weak management capabilities,and innovative business.The expansion of regional commercial banks in different places is restricted by the gradual tightening of regulations.While the "regional" characteristics help them to accurately locate the market,their own development is also more susceptible to the impact of regional economic development levels.With the gradual advancement of interest rate liberalization reform,market competition faced by regional commercial banks will become more intense.So the regional commercial banks have an urgent need to optimize and adjust the income structure and actively seek innovation and transformation.However,due to the complexity and uncertainty of innovation,the United States had a "death valley" of banking transformation in the 1980 s,and small and medium banks closed down in the process of interest rate liberalization.Therefore,this paper combines the macro and micro factors to explore the deep-level factors that drive the bank's innovation ability,which helps regional commercial banks to grasp the main direction of innovation transformation,so that regional commercial banks can better realize the transformation and development to serve the local economy.This research firstly defines the relevant concepts.And then,based on the theory,referring to the relevant research on the bank's innovation ability,and combing the current situation of regional commercial banks,this article selects the factors that may have a greater degree of influence for theoretical analysis,to study the influencing factors of regional commercial banks' innovation ability from micro perspective combining the macro factors.This research analyzes factors of regional commercial banks' innovation ability from the four aspects of human resources,financial performance,risk management,and governance structure,and considering the characteristics of regional commercial banks that are susceptible to regional economic development,to study regulatory effect of regional economic development leveling.After theoretical analysis,a panel data model is established to conduct an empirical analysis of the factors affecting the regional commercial banks' innovation capabilities.Based on the results of the empirical analysis,relevant suggestions are made for regional commercial banks to improve their innovation capabilities.From the empirical test results,there is a significant correlation between the proportion of employees above bachelor degree,equity balance degree,broad scale,ratio of independent directors,supervisor board scale and the innovation capabilities of regional commercial banks.The lower the equity balance degree,the larger broad scale,and the higher ratio of independent directors,and the larger supervisor board scale,the higher the innovation capacity of regional commercial banks.When considering the regulatory effects of regional economic development levels,the level of regional economic development significantly weakens the negative correlation between the equity balance degree with the innovation capabilities of regional commercial banks,significantly promotes the positive correlation between the broad scale with the innovative ability of regional commercial banks,significantly weakens the positive correlation between supervisor board scale with the innovative ability of regional commercial banks,and significantly promotes positive correlation between proportion of employees above bachelor degree with the innovative ability of regional commercial banks.The innovation of this research is that conducting a comprehensive study of the factors affecting the innovation capabilities of regional commercial banks combining previous researches,instead of targeting large commercial banks like most previous literatures on bank innovation capabilities.At the same time,considering regional commercial banks is susceptible to the influence of the level of regional economic development,making a try to introduce the level of regional economic development as a moderating variable into the model to study the regional differences in the factors affecting the innovation ability of regional commercial banks.