Keywords
market competition, rural commercial banks, business risk
Abstract
Taking the rural commercial banks from 2012 to 2018 as the research object,this paper uses the fixed effect model to study the impact of market competition on the business risk selection of rural commercial banks,and further explores the specific action path of the impact based on the rural commercial banks.The results show that: firstly,the market competition coefficient is significantly positively correlated with the business risk coefficient of rural commercial banks,that is,the increase of market competition degree will enhance the business risk faced by rural commercial banks.Secondly,the increase of market competition will significantly reduce the loan interest rate and the spread between deposits and loans of rural commercial banks,which will affect the choice of project risks and the behavior of senior managers,and ultimately lead to the increase of banking business risks.
DOI
10.16315/j.stm.2021.04.005
Recommended Citation
CHEN, Hang-ying and LU, Zhi-qiang
(2021)
"The influence of market competition on the risk selection of commercialbank business,"
Journal of Science and Technology Management: Vol. 23:
Iss.
4, Article 5.
DOI: 10.16315/j.stm.2021.04.005
Available at:
https://jstm.researchcommons.org/journal/vol23/iss4/5
