Influence Of Ownership Structure On Non-Performing Loans Of Urban Commercial Banks Of China

With the economic growth getting slower and the financial regulation becoming stricter,China’s commercial banks have seen their net interest margin decline and credit quality deteriorate.Among them,the urban commercial bank,which is an important part of commercial banks and regional financial system,its non-performing loan balance and non-performing loan ratio also show an increasing trend year by year,and there is obvious different distribution between regions and industries.As important an index to measure credit quality,the rise of nonperforming loan ratio and balance and regional accumulation not only seriously affects the liquidity of urban commercial banks,but also poses a serious threat to regional financial security.Based on the background mentioned above,this article has analyzed the theoretical mechanism of how equity structure has impact on non-performing loans at first,and then use the data of city commercial banks in China from 2010 to 2019 to build an unbalanced panel model to verify theoretical mechanism of how the equity structure influence the non-performing loan of city commercial banks.The empirical conclusions are as follows: The increase of equity concentration can reduce the non-performing loans of urban commercial banks;Compared with non-state-owned major shareholders,the state-owned nature of the largest shareholder can significantly improve the level of non-performing loan ratio,and the state-owned nature of the largest shareholder has a significant moderating effect on the impact of ownership concentration on non-performing loan ratio.Ownership structure can affect the non-performing loan ratio by affecting bank credit issuance.In terms of regional heterogeneity,the non-performing loan ratio of urban commercial banks in central China is most affected by equity structure.In terms of market environment heterogeneity,due to the intensified external competition environment of Chinese commercial banks after 2015,the impact that equity structure exert on non-performing loan has significant differences before and after2015.To be specific,the influence of ownership concentration on the nonperforming loan ratio of urban commercial banks is not significant before 2015,but there is a significant influence after 2015.The nature of major shareholders(stateowned property)has a negative impact on the non-performing loans of urban commercial banks before 2015,and a positive impact after 2015,indicating that the change of the macro environment in 2015 did exert a significant impact on the credit operation of urban commercial banks.At last,on the grounds of empirical conclusions,this paper proposes following suggestions for urban commercial banks :(1)Appropriately improve the ownership concentration.(2)Formulate credit policies according to local conditions and financial environment.(3)Accelerate the transition to retail business as quickly as possible.