The Impact of Ownership Concentration, Internal Risk Governance, Capital Regulation Pressure and Income Diversification on Performance and Stability of City Commercial Banks

City Commercial Banks (CCBs) are vital players in China's financial system, but they face persistent challenges, including declining profitability, rising credit risk, and fragile governance structures. Ownership concentration plays a dual role in shaping bank performance and stability, offering both enhanced control and heightened risks such as expropriation of minority shareholders and governance inefficiencies. This study investigates the impact of ownership concentration, internal risk governance, capital regulation pressure, and income diversification on the performance of CCBs, using panel data from 35 CCBs between 2011 and 2022. Results reveal that concentrated ownership often correlates with excessive risk-taking, negatively affecting performance, whereas robust governance mechanisms and income diversification enhance stability. These findings provide actionable insights for policymakers and bank executives aiming to enhance the resilience and efficiency of CCBs in a complex regulatory and market environment.