Research On The Influence Of Ownership Structure On Risk Bearing Of Chinese Rural Commercial Bank

As the main supply of rural financial services,rural commercial banks are the important driving force in the process of agricultural modernization,and play a decisive role in the integration construction of urban and rural areas and prosperous development of county economy.However,in recent years,the small and mediumsized local banks represented by the rural commercial bank crisis events occur frequently,causing concern.As a special product of property rights reform of rural credit cooperatives,rural commercial banks have some characteristics,such as late restructuring,limited business scope,highly dispersed equity,small asset scale,small mission of serving agriculture,agriculture and rural support.This paper analyzes the difficulties faced by rural commercial banks in risk control and puts forward corresponding risk decision-making suggestions,which is of great significance for promoting the reform of agricultural supply side and maintaining the stable development of rural financial markets.Therefore,this paper takes rural commercial banks as the research object,and on the basis of studying the effect of equity nature on bank risk taking,further studies the change of local private shareholding ratio on rural commercial banks’ risk taking.In view of the reality of highly dispersed ownership of rural commercial banks,high proportion of agriculture-related loans and frequent inter-bank investment in rural commercial banks,explanatory variables such as ownership concentration,equity checks and balances,agriculture-related shareholding and inter-bank investment are introduced to comprehensively investigate the influence of ownership structure on risk taking of rural commercial banks.Finally,the adjusting variable of marketization index is introduced to analyze the influence changes of equity nature,agriculture-related shareholders’ shareholding and interbank shares on bank risk taking under the different degree of regional marketization.This can provide better theoretical reference for understanding the risk condition of rural commercial bank,preventing and defusing the risk of small and medium-sized bank,and establishing higher level rural commercial bank.Based on 540 data collected from 90 rural commercial banks during 2015-2020,this paper finds that:(1)there is a negative correlation between the existence of private major shareholders and the risk taking of rural commercial banks.(2)There is a negative correlation between ownership concentration and risk taking of rural commercial banks.(3)There is a positive correlation between equity balance and risk taking of rural commercial banks.(4)There is a negative correlation between the shareholding ratio of local private shareholders and the risk taking of rural commercial banks.(5)There is a negative correlation between agriculture-related shareholder holdings and risk taking of rural commercial banks.(6)There is a negative correlation between interbank investment and risk taking of rural commercial banks.Secondly,after introducing the market-oriented index of regulating variables,it is further found that:(1)the degree of marketization has no significant regulating effect on the equity nature and risk taking of rural commercial banks.(2)The degree of marketization has an enhanced and moderating effect on the negative effect of agriculture-related shareholders and rural commercial banks’ risk taking.(3)The negative effect of interbank investment on risk taking of rural commercial banks is enhanced in areas with high degree of marketization.Finally,according to the risk bearing status of Chinese rural commercial banks and the empirical results of this paper,the following policy recommendations are put forward:(1)private investment is still a better way to improve equity ownership and introduce more advantages to local private shareholders.(2)Optimize the ownership structure,appropriately improve ownership concentration,and avoid internal friction among major shareholders.(3)Encourage agriculture-related enterprises to buy shares,and improve the financial service innovation level and risk control level of banks’ agriculture-related loan business.(4)Advocating equity participation in the same industry to form scale effect and business synergy effect within the region,laying the foundation for the establishment of higher-level rural commercial banks.The innovation of this paper lies in the following aspects:(1)Innovation of research perspective: On the basis of exploring whether the private investment in rural commercial banks is still effective,private shareholders are further divided into local private shareholders and non-local private shareholders,which has certain innovation in the perspective of research on the nature of equity.(2)Innovation of research content:(1)Based on the characteristics of rural commercial banks’ heavy mission of serving agriculture,rural areas and farmers and the high proportion of agriculture-related loans,explanatory variables of agricultural enterprises’ shareholding are introduced to explore whether agriculture-related shareholding is more beneficial to reducing the risk of rural commercial banks,which is innovative in terms of research content.(2)Based on the current situation of frequent interbank investment in rural commercial banks,the explanatory variable of inter-bank investment is introduced to explore whether it is a feasible way to reduce the risk taking of rural commercial banks through inter-bank investment,and there are some innovations in the research content.