Research On Cross Regional Operation Risk And Its Transmission Mechanism Of Urban Commercial Banks

With the increasingly fierce competition among various domestic banks and financial institutions,urban commercial banks have adopted a variety of ways to conduct cross regional operations,which has rapidly enhanced their own business strength and market competitiveness;However,the blind cross regional operation leads to its rapid expansion,and the risks are gradually emerging.Firstly,starting from the relevant theoretical basis of cross regional operation of urban commercial banks,this paper analyzes the role of cross regional operation of urban commercial banks in business performance and risk management;Then it analyzes the current situation of cross regional operation,studies the risks contained in cross regional operation,and puts forward relevant research hypotheses through the case analysis of cross regional operation of subcontractor banks;Then,by collecting and sorting out the relevant data of 50 urban commercial banks from 2007 to 2020,this paper analyzes the impact of cross regional operation on credit risk and liquidity risk,and analyzes the mechanism of the empirical results from the two aspects of credit structure and interbank business scale.The main conclusions are as follows:(1)through cross regional operation,urban commercial banks can improve the status of credit risk and liquidity risk and improve the level of risk managemen t;(2)In terms of other factors affecting the risk of urban commercial banks,the increase of asset scale,capital adequacy ratio and return on net assets of urban commercial banks is conducive to the reduction of their risk.The higher the loan ratio of urban commercial banks is,the greater the risk is.The better the economic development of the city where the headquarters of urban commercial banks are located,the smaller the risk;(3)In the analysis of the transmission mechanism of the relationship between cross regional operation and risk,first,cross regional operation affects the risk by affecting the credit structure and the scale of interbank business.Finally,it puts forward relevant policy suggestions from the perspectives of urban commercial banks and regulatory authorities.