Research On The Impact Of Equity Structure Of Urban Commercial Banks On Risk Taking

Since the 19th CPC National Congress,the handling of financial risks has been the top priority of China’s financial work.At the 20th CPC National Congress,it was pointed out that the most important measure to resolve major financial risks is to compact the main responsibilities of financial institutions and their major shareholders,actual controllers and ultimate beneficiaries.As the mainstay of China’s financial market,banks are bound to be the backbone of resolving financial risks.The scale and number of China’s urban commercial banks have expanded rapidly in recent years,but there are also many problems in operation and management,such as imperfect internal governance mechanism,weak risk management ability,and so on.The existence of these problems may cause damage to the interests of relevant groups of urban commercial banks.Therefore,this paper studies the relationship between the ownership structure and risk taking of urban commercial banks,which is of great significance for how to optimize the ownership structure and risk management of urban commercial banks.This paper first points out the background and significance of the topic,and reviews and summarizes the relevant literature of domestic and foreign scholars on equity structure and risk bearing of urban commercial banks by using the literature analysis method.In combination with the characteristics of equity structure and risk bearing of urban commercial banks in China,the equity structure is divided into three aspects: equity concentration,equity balance and equity attribute,And then study the mechanism between the three aspects and risk taking,and then put forward relevant research hypotheses.Finally,this paper selects the data of 41 banks from all urban commercial banks in China from 2014 to 2021 as a sample,establishes a multiple linear regression model,conducts empirical research on the relationship between equity structure and risk taking,and then puts forward targeted suggestions on how to optimize the equity structure of urban commercial banks in China based on the research results.The results show that there is a positive relationship between equity concentration and risk taking of urban commercial banks;The degree of equity balance has a negative relationship with the risk taking of urban commercial banks;If the first shareholder of a city commercial bank has a state-owned background,it bears less risk.Based on the above research results,corresponding countermeasures and suggestions are proposed:(1)Reduce the shareholding proportion of the first shareholder.(2)Establish a mutual constraint relationship with the first shareholder.(3)Actively introduce institutional investors to optimize the equity structure.(4)Ensure the existence of state-owned shares and optimize the allocation of state-owned shares.