The Influence of Shareholders'Administrative Level on Risk Taking of Commercial Banks
After the outbreak of the novel coronavirus(COVID-19),the global economy has been generally affect-ed by negative impacts,and the risk taking and risk mitigation measures of banks have become the focus of high at-tention of the society and the public.The empirical study on the relationship between the administrative level of shareholders and risk taking in commercial banks shows that the improvement of the administrative level of state-owned equity in commercial banks has a positive promoting effect on resolving bank risks.When a bank is con-trolled by a shareholder with a higher administrative level,it will alleviate the related loan problem of the bank when the local government dominates the equity,and thus reduce the risk of the bank.Shareholders with higher ad-ministrative level will improve the bank's ownership concentration,improve the bank's operating conditions,reduce the principal-agent problem,and thus reduce the bank's risk bearing.Therefore,the administrative level of share-holders in China's commercial banks should be appropriately raised.And especially unlisted commercial banks and small and medium-sized urban commercial banks and rural commercial banks in economically underdeveloped are-as should do so in order to effectively control the manipulation of loans by local government shareholders,improve bank governance,promote risk resolution and steady operation of commercial banks,and avoid systemic financial risks.
Commercial BanksAdministrative Level of ShareholdersBank Risk-taking
NETL
NSTL
万方数据
