The Empirical Research Of Loan Concentration And Collateral Loan Preference

With fast development of China, banks as the core of the credit market play an important role in the process of enterprise financing. However, credit has shown some unique behaviors in this processing, and the main performances include loan concentration, collateral loan preference, loan discrimination and so on. How would these behaviors affect enterprise? In order to conduct an objective understandings of these behaviors and finding methods to promote our economic, this article analyses the loan behaviors using theoretical and empirical methods, especially focusing on loan concentration and collateral loan preference.Through the credit circumstances survey of 500 companies' in one city of Jiangsu, this paper focuses on credit data in 2007 for empirical analysis. Considering the city's economic status in Yangtze River Delta zone, the research for loan behaviors of banks can be on behalf of micro loan behaviors of commercial banks in the eastern part of China. Because of little empirical research in China, this paper prefers scholars from abroad to build an Multiple Regression model, Logistic model and Tobit model. Using these empirical methods, this paper analyses the loan concentration and collateral loan preference. Empirical study shows significant loan concentration and collateral loan preference in this city, and the incidence ratio is similar to the ratio in Thailand. Then this paper analyses a number of factors affecting these loan behaviors. With empirical research and some cases, paper focuses on credit risk of the two behaviors, and proposes some recommendations for optimising credit resources. It has a value of theoretical and practical.