Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12–14, 2024, Ningbo, China

Research Article

The Research into the Influence of Liability on Commercial Bank Competition

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  • @INPROCEEDINGS{10.4108/eai.12-1-2024.2347188,
        author={Qilong  Yu},
        title={The Research into the Influence of Liability on Commercial Bank Competition},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12--14, 2024, Ningbo, China},
        publisher={EAI},
        proceedings_a={BDEDM},
        year={2024},
        month={6},
        keywords={fixed effect model asset-liability bank competition},
        doi={10.4108/eai.12-1-2024.2347188}
    }
    
  • Qilong Yu
    Year: 2024
    The Research into the Influence of Liability on Commercial Bank Competition
    BDEDM
    EAI
    DOI: 10.4108/eai.12-1-2024.2347188
Qilong Yu1,*
  • 1: HUIHONG International City
*Contact email: yuqilong1103@163.com

Abstract

Assessing the assets and liabilities of commercial banks is critical to their individual competition and overall development. Although the asset and liability management methods and strategies of different commercial banks have been comparatively analysed and systematically improved to a large extent, there is a lack of statistical research on how exactly balance sheet ratios affect the competition of different commercial banks. Therefore, this paper collects data on gearing, competition, and other control variables for 3,687 banks from the WIND and CSMAR databases for the period 2012 to 2021. The paper constructs a fixed effects regression model and demonstrates that the model is robust; the endogeneity of the model is tested using two-stage least squares. The conclusions suggest that bank gearing has a negative impact on bank competition, especially for regional banks and banks with high gearing.