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| Research on the Loan Concentration and Asset Quality Level in Municipal Commercial Banks |
| ZHOU Chunxi1,MAO Yue2 |
1. School of Finance, Zhejiang Gongshang University
2. Research Institute of Mintai Finance, Zhejiang Mintai Commercial Bank
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Abstract Based on the annual data of 46 municipal commercial banks in 27 provinces in China from 2007 to 2016, this paper studies the influences of the concentration of customer loans and industry loan on asset quality. This paper further investigates the lag of credit strategies of municipal commercial banks, compares the differences between municipal commercial banks’ loans in the eastern, central, western and northeastern regions, and the effect of the introduction of foreign strategic investors on asset quality. Empirical results show that: loan concentration of municipal commercial banks has a negative impact on asset quality. The impact of customer loan concentration is larger than industry load concentration. Industry loan concentration is only significant in municipal commercial banks in the eastern region. The effect of loan concentration on the level of bank asset quality has lagged effect and cumulative effect. The impact if loan concentration on asset quality varies in regions. In under-developed western regions, compared with developed eastern regions, industry concentration has more impact on asset quality. Municipal commercial banks with foreign strategic investors prefer aggressive and high loan concentration. Based on the above empirical results, some suggestions are put forward for municipal commercial banks.
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Received: 20 April 2018
Published: 15 September 2018
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Corresponding Authors:
ZHOU Chunxi
E-mail: zcx620008@163.com
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2018, Vol. 38 
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