Author(s)

Yanhui Hu^*

Jinan University, Guangzhou, China.

Improving the internal governance is the key factor to promote the development of banking stability, especially for the banks which are just stepping on the right way. This article chose 23 city commercial banks, which had more than 50 billion assets, as the object of study and got the data of them through reading their annual reports from 2008 to 2014 for the empirical study. From the research, we found out that there was no significant relationship between the nature of the bank’s largest shareholder and the banking risk, and the ownership concentration, board size, salary incentive and regional GDP had an opposite relationship with the banking risk, the independent director proportion and banking risk were positively related.

Internal Governance, City Commercial Banks, Banking Risk

Hu, Y. (2016) The Impact of Internal Governance on Bearing the Risk of City Commercial Banks. Open Journal of Social Sciences, 4, 163-172. doi: 10.4236/jss.2016.42022.