Research on the Effect of Village Banks'Scale Expansion on Operational Risks——Based on the Empirical Test of 287 Village Banks in China
In recent years,China's village banks have developed rapidly,and the rapid scale expansion of village banks has led to serious violations and financial risks in some areas.In this context,it is of great practical significance to study the impact of the scale expansion of village banks on the operational risk,and to put forward policy suggestions to restrain the risk and standardize the development.Based on the micro data of 287 village banks in China,this paper empirically examines the impact of the scale expansion of village banks on operational risk and its mechanism.The results of the study show that:the scale expansion of village banks will promote the rise of operational risk through the channels of equity concentration effect,high-risk investment effect and deposit competition effect;the scale expansion of village banks in the central and western regions and smaller scale is more likely to lead to risk.The policy recommendations are:to prevent the excessive concentration of equity,higher risky investment preference and excessive competition in the deposit market caused by the scale expansion of village banks;to strengthen the supervision of village banks in the central and western regions and smaller village banks,and to implement differentiated supervision to constrain the operational risks of village banks.
Village BanksScale ExpansionOperational RiskEmpirical AnalysisMechanism Verification
NETL
NSTL
万方数据
