Research On The Economic Effects Of The Concentration Of China's Banking Industry

Since the reform and opening up in 1978,along with the continuous development of social economy,China's banking industry has also experienced a process of continuous development and change.From the initial "unified" banking structure to the "dual" system of unbundling,and then gradually formed a state-owned commercial banks,joint-stock commercial banks,urban commercial banks,postal savings banks,as well as many foreign banks and private banks of the multi-subject,multi-nature,hierarchical banking system.China's banking competition pattern,also from the beginning of the absolute monopoly to the oligopoly competition pattern development.The competitive landscape of China's banking industry has also evolved from the absolute monopoly of the country to the pattern of oligopoly.Correspondingly,China's economic development has made remarkable achievements during this period.The economic effect of banking concentration is naturally raised: what kind of economic effect will the change of banking concentration bring? This change will inevitably lead to changes in risk and how to carry out effective risk taking.What are the deficiencies and deficiencies of the research results at home and abroad? How to measure and assess the concentration and regional differences of China's banking industry? How to grasp the development and evolution of China's banking industry? How are the economic effects brought about by the changes of banking concentration reflected at the macro,meso and micro levels? What is the relationship between banking concentration and risk-taking in China? What is the relationship between China's banking concentration and risk-taking?This paper will focus on the above-mentioned series of problems,and take the economic effects and risk-taking of banking concentration as research subjects.By choosing scientific and effective measurement tools and effective research paths,the above-mentioned problems will be explored and studied in order to get valuable policy suggestions on the basis of this,and thus.It is beneficial to optimize the industrial structure,industrial growth,enterprise investment and monetary credit policies of China's banking industry.The logical structure and content of this paper are summarized as follows: The first part is the introduction,mainly on the basic issues of this study,The first part is the introduction,which mainly explains the basic problems of this research including the background and significance of the study research,the status and shortcomings of relevantresearch at home and abroad,the methods and paths selected by this study,as well as the innovation and shortcomings of this study.The main body of the paper is composed of six chapters,of which the first chapter is the theoretical analysis of the economic effect and risk-taking of banking concentration.The main part of the thesis consists of six chapters.The first chapter is the analysis of the economic effects of banking concentration and the theoretical basis of risk bearing.This chapter mainly introduces the general situation and measurement methods of banking concentration in China,and focuses on analyzing the economic effects of banking concentration from macro,meso and micro dimensions.Specifically,this chapter takes economic growth as the macroeconomic effect of concentration,industrial growth as the medium economic effect,enterprise investment and monetary and credit policies as the micro economic effect,and explores the impact of banking concentration on these four aspects.In addition,in order to cope with the risk of banking concentration changes,we must understand the risk formation mechanism of concentration itself.The second chapter is the empirical study of the impact of China's banking concentration on economic growth.This chapter mainly focuses on the answer "whether the banking concentration will affect economic growth",using VAR time series method for empirical analysis,found that the reduction of banking concentration is conducive to economic growth.The third chapter is to empirically test the relationship between banking concentration and industrial growth.In2003-2017,more than 100 commercial banks and 39 industrial enterprises were selected.These enterprises mainly include two types: state-owned enterprises and non-state-owned enterprises with annual income of more than 5 million.Through the analysis of the data of these two types of enterprises,we can find that: in China,the role of the banking sector in the growth of the industry is mainly dependent on Non-technical re-allocation of resources,rather than technical promotion.In the reallocation of industrial resources,there is a significant positive effect on the concentration and competitiveness of the banking industry.Comparatively speaking,the positive effect brought by concentration degree is greater than the positive effect brought by competition.From a macroscopic perspective,the effect of concentration allocation is greatly weakened by the factor of competitiveness in resource redistribution.The bad consequence of this situation is that banks can not give full play to their information screening function.From the perspective of the elasticity of banking concentration on industrial growth effect,the industries with transparent information have higher elasticity,while those with opaque information have lower elasticity.It can be seen that the concentration of banking industry can not be viewed unilaterally.In fact,the current banking concentration in China is consistent with the strategic objectives of China'scurrent economic development.By improving the concentration of the banking industry,we can give full play to the information screening function of the bank,so as to enhance the bank's ability to screen enterprises and projects,and then promote the flow of high-quality resources to high-quality enterprises,thus promoting China's economic restructuring and improving quality.The fourth chapter is an empirical study of the impact of China's banking concentration on corporate investment.The problem that this chapter solves is "the impact of the change of banking concentration in China on the investment of enterprises".In order to better study this problem,this chapter uses the mediation effect analysis method to test the impact of banking concentration on the long-term and short-term investment behavior of enterprises.The results show that the increase of banking concentration will squeeze out the short-term investment of enterprises,but will increase the long-term investment of enterprises.The decline of concentration degree has the opposite effect on short-term investment and long-term investment.The fifth chapter is the empirical research on the impact of China's banking concentration on the transmission of monetary and credit policies.To a large extent,the degree of competition in banking industry is related to the credit behavior of banks.The change of bank competition pattern makes the bank credit behavior change,and then affects the money supply in the market.Therefore,combing and analyzing the competition degree of the banking industry,and combining with the analysis of the structural impact of the competition pattern of the Chinese banks on the credit channel of the banks,can help the actual landing effect of China's monetary policy.It also has important practical significance for the banking reform under the background of transformation and upgrading.This chapter is devoted to providing some evidence of the impact of concentration on monetary and credit transmission.The sixth chapter is the empirical study of the risk bearing of China's banking concentration.This chapter is devoted to answering "the relationship between banking concentration and risk in China",and draws relevant conclusions by constructing risk measurement indicators and empirical research.The last part is the conclusion and policy recommendations.On the basis of combing and summarizing the conclusions of the previous chapters,the paper puts forward corresponding policy recommendations on banking concentration.The main conclusions of this paper are as follows: from the perspective of economic growth,there is a certain negative correlation between the increase of bank concentration and economic growth;but from the perspective of resource redistribution,there is a certain positive correlation between the increase of banking concentration and resource redistribution.However,the marginal effect of this positive correlation decreases.With thefurther improvement of banking competitiveness,the effect of resource redistribution will be weakened correspondingly,and large industrial enterprises are more sensitive to this positive effect;the increase of banking concentration will have an impact on the investment behavior of enterprises.Generally speaking,with the increase of concentration,the long-term investment of enterprises will increase,while the short-term investment will decrease;the increase of banking concentration can strengthen the influence of bank channels on monetary policy,and then affect the structure of bank balance sheet.The substitution between loan assets and non-loan assets of banks will decrease with the increase of bank concentration.Under such circumstances,firms will be more inclined to choose indirect financing channels,thereby enhancing the dependence on bank credit;in the asset and loan markets,banking concentration and bank risk appear inverted U-shaped relationship.On the whole,China's banking industry needs to be moderately concentrated.The innovation of this paper: In the existing literature on the economic impact of banking concentration,the research of domestic and foreign scholars is mostly confined to a single national and inter-provincial level.Few scholars attempt to conduct a more comprehensive perspective,that is,from the perspective of economic growth,industrial development,enterprise investment,monetary and credit transmission.And risk bearing five aspects in detail.In addition,the comparative study from the perspective of regional differences is also a neglected perspective.In view of this,on the basis of previous studies,this paper focuses on the analysis of China's banking concentration and economic growth,industrial development,enterprise investment,monetary and credit transmission and risk-taking relationship,through empirical analysis,to enhance the interpretation of the conclusion of maintaining a moderate concentration of banking.In the existing research,few scholars have explored the economic effects of banking concentration in an all-round way from a general perspective,covering the macro,meso and micro levels.This paper makes an empirical analysis of the economic effects of banking concentration on China's economic growth and development from the macro,meso and micro levels by searching and sorting out the existing literature.Under the current economic development pattern of our country,this paper probes into the problem of optimizing the positive economic effect brought about by the banking concentration degree,and probes into the boundary of the economic effect of the banking concentration degree,so as to ensure that the banking concentration degree is maintained within the framework of promoting the sound and rapid development of our country's economy,so as to effectively control the banking market structure.Differentiated policies provide the basis for decision-making.The shortcomings of this paper are as follows: Firstly,this paper analyzes theeconomic effects and risk-taking of banking concentration from the aspects of economic growth,industrial growth,enterprise investment,monetary and credit transmission and risk-taking,and draws some conclusions,but some problems which are inconsistent with reality need further investigation.For example,how to maintain proper concentration,how to measure and grasp this degree needs further in-depth study.Secondly,whether the relevant indicators of economic growth,industrial development,enterprise investment and monetary and credit transmission selected in this paper can fully represent the issues to be studied needs further exploration.