Impacts of Bank Competitions on Bank System Risks in China

Abstract

Since China's reform and opening up, the banking industry has developed very rapidly, and the banking industry has also become the core foundation of China's financial industry. However, with the continuous development of the financial and banking industries, the degree of competition in the banking industry is also increasing. Combined with the current situation of the Bank of China, this paper will use the quarterly financial statement data of 20 listed banks from 2007 to 2020 to measure the relationship between banking competition and banking system risk. First, I will get the corresponding data from the financial statements of different banks, such as operating income, ROA, etc. Then, I will use R and SPSS to analyze and build the model. Finally, after analyzing the relationship between bank competition and banking system risk, this paper will put forward corresponding suggestions according to this relationship.