Financial Geographical Structure And Corporate Financing

The financial geographical structure refers to the spatial distribution of financial resources.It mainly refers to the influence of changes in bank resources such as the distribution,expansion,and location selection of commercial banks.In 2009,the China Banking Regulatory Commission issued the "Adjustment Opinions on the Market Access Policy of Branches of Small and Medium-Sized Commercial Banks(Trial)" and formally began to encourage the expansion of small and medium-sized commercial banks.The rapid expansion of small and medium-sized commercial banks has not only brought about changes in the banking structure but also Bring about changes in the financial and geographical structure.In recent years,China's economy has entered a new period of superposition in the third period.Enterprises,especially small and medium-sized enterprises and private enterprises,have become an important issue that needs to be resolved once again because of difficulties in financing and financing.In the context of economic restructuring,the State Council has for the first time put forward a five-year plan for the development of inclusive finance in order to improve the coverage,availability,and satisfaction of financial services,in the "Plan for Development of Inclusive Finance(2016-2020)".It provides policy support for the implementation of "inclusive finance."Afterwards,General Secretary Xi Jinping proposed a "structural reform on the supply side",in which an important policy task at the financial level is to increase financial supply and reduce business costs.Based on the above policy background,this paper discusses in depth the impact of changes in financial geography structure on bank risks and corporate financing,mainly involving four aspects:commercial bank expansion,bank location selection,financial availability,and bank-enterprise distance.First of all,this paper studies the heterogeneity impact of inter-provincial and intra-provincial expansion of commercial banks on self-risk in the case of urban-business behavior.Secondly,based on the status quo of the expansion of small and medium-sized banks,the relationship between bank location selection and corporate financing effectiveness is analyzed,and then the optimal location choice of commercial banks is analyzed.Finally,based on the distance between banks and enterprises,the paper discusses the impact of financial availability on the financing of SMEs and private enterprises and their channels.First of all,the inter-provincial and intra-provincial firms' heterogeneity impact on bank risk is affected.The results of the study indicate that:Firstly,the inter-provincial and intra-provincial expansion of city commercial banks has significant heterogeneity in market selection:City commercial banks'inter-provincial expansion will give priority to a "big market",while provincial expansion will choose a "small market".Second,the cross-provincial and intra-provincial expansion of city commercial banks has significant heterogeneity in terms of expansionary causes:Inter-provincial expansion is greatly influenced by shareholders while provincial expansion is less affected by shareholders.Thirdly,this heterogeneity can have a huge impact on bank risk:inter-provincial expansion reduces the risk of city commercial banks,while intra-provincial expansion increases risk.Secondly,the impact of bank location selection on financing amounts and financing costs.The main conclusions are:Firstly,the selection of banks in different areas has a significant impact on the level of financing and financing costs of the company.The most favorable area for corporate financing when a bank chooses a location is 5-10 kilometers from the company.Secondly,the effect of bank location choice on the effectiveness of corporate finance depends on the individual characteristics of the company:From the perspective of firm size,bank location choice has no effect on the financing level of large enterprises,but the positive impact on small and medium-sized enterprises is more obvious.From the perspective of the company's location,in the more developed regions of the eastern part of the country,banks' 5-10km expansion has the most significant impact on the reduction of financing costs for financing;while in the midwestern enterprises,the bank location choices are closer to the company than the enterprises.The more positive the positive effect is.Judging from the forms of ownership,the closer the banks is,the more it can raise the financing level of state-owned enterprises and reduce the cost of financing.However,for non-state-owned enterprises,the choice of bank location is not as close as possible.Thirdly,the research results show that:First,the improvement of financial availability can effectively increase the financing level of enterprises and reduce their financing costs.Second,financial availability has a heterogeneous impact on enterprises of different scales and different ownership systems.Thirdly,financial availability mainly influences corporate finance through two channels:"competition effect" and "distance effect".The results of the study indicate that the development of inclusive finance should continue to be promoted,and banks should be supported in rational and effective expansion and deployment of branches.Finally,the main conclusions are:First,the distance between banks and enterprises is negatively related to the number of loans from private enterprises.The farther the loan banks are from the enterprises,the less the amount of loans they receive.Second,there is a positive correlation between the bank-enterprise distance and the loan cost of the private enterprise.The farther the loan bank is from the enterprise,the higher the corporate loan interest rate.Thirdly,the distance between banks and enterprises is negatively related to the loan period of private enterprises.The farther the loan bank is from the company,the shorter the loan period of the company.Finally,the relationship between banks and enterprises will also affect the number,cost,and maturity of corporate bank loans.At the same time,bank-enterprise relations will weaken the influence of distance factors on corporate finance.Based on the practical background of the expansion of small and medium-sized commercial banks,this paper demonstrates the impact of changes in financial geographical structure on commercial banks and corporate financing,and provides strong empirical support for the effectiveness of "integral finance" and "supply-side structural reform."...