Geographic Diversification of City Commercial Banks:Lending Expansion,Risk Level and Bank Performance
研究地理多元化对城市商业银行贷款行为、风险水平和绩效的影响，发现多元化银行规模更大、风险更低，且多元化程度越高，贷款增长越快、不良率越低。
This paper studies the effect of geographic diversification on the City Commercial Banks' lending behavior、risk level and bank performance.Using 104 City Commercial Banks' unbalanced panel data,we find out that the geographically diversified banks are those banks with bigger size,higher capital ratio and stronger market share.Compared to the local banks,geographically diversified banks have lower risk level.Furthermore we test the effect of the geographic diversification level on banks' lending behavior,risk level and bank performance. We also find out that the higher level of geographic diversification,the higher of banks' loan growth ratio, and the lower of banks' impaired ratio.All these findings provide empirical evidences for the geographic diversification strategies of city commercial banks and the regulatory implications of regulatory bodies in China.