The Study About Credit Transfer Of Commercial Banks Based On Herding Behavior

Credit conduction is a kind of monetary policy transmission mechanism. As a mean of allocation of social resources, credit conduction of commercial banks plays an important role in providing corporate finance and promoting economic development for our country, in which indirect financing still dominates the financial market. However, in the lending process commercial banks present a clear focus on herding behavior. Specific performance is credit funds focus on transportation, electricity, hot real estate monopoly industries; on east, coastal and other developed areas; on large state-owned enterprises. Credit concentration due to herding behavior is to some extent the result of optimizing the allocation of credit resources, but excessive concentration of credit to commercial banks also takes an enormous potential risk. Therefore, in-depth study of credit transmission mechanism and effect of commercial banks under herding behavior have great significance to healthy ,sustainable and stable development of credit markets.In this paper, we use method of game theory and information economics to discuss the theory of herding behavior in the credit market; by reference to commercial bank profit function, using mathematical finance method to discuss credit transmission mechanism and transmission channels; and then select the data of our credit market to make an empirical study on herding behavior concentration and credit transmission under herding behavior. The result show: different kinds of commercial banks exist herding behavior in our country, the main representation is under conditions of incomplete and asymmetric information of credit market, small and medium sized banks have some imitation to state-owned and joint-stock commercial banks on credit investment decision, and conduction effect of state-owned commercial banks to small banks is larger than joint-stock commercial banks to small banks, which to some extent results credit funds concentration; further study industry conduction under herding behavior, we find the degree of credit funds concentration to the monopoly industry such as real estate industry has a positive correlation to expected yield of credit funds, the bigger the expected yield of credit funds, the more concentration of credit funds; and constantly increasing of credit funds is the main reason for real estate price rising. Therefore, to prevent the industry bubble and credit concentration risk, in the credit process the commercial banks should consider the situation of their own and others to improve management of loan concentration, combine non-performing loan ratio and loan structure, make a careful decision of credit scale to various sectors, so as to promote the credit market healthy, sustainable and stable development.