Abstract
This paper discusses the city commercial banks’ economies of scale in the Chinese Yangtze river delta region, by using TCF (translog cost function) method. And the main factors influencing city commercial banks’ scale economy is also discussed. Combined with the financial statement data of each bank, the economies of scale of 15 city commercial Banks and 4 state-owned commercial Banks in 2010-2016 was empirically studied. The results showed that during the sample period, the city commercial bank and the state-owned commercial bank generally showed a downward trend of scale economy, but some banks experienced a short-term increase in economies of scale. The bigger the bank, the less obvious the economies of scale; The more branches there are, the less effective in economies of scale. The higher the loan-to-deposit ratio, the less economic the banks are.