Commercial Banks To The Catalytic Mechanism Of The Industrial Development And Empirical Research

Commercial Bank acts as the transfer machine of the social resources and promotes the formation of real capital to achieve the catalysis role in the industries. The rising industries will be accelerated by commercial bank and the recessionary industries will be felled. The roles played by the bank are in connection with its market structure and regulations.This paper studies these roles' mechanism and provides that improving the banking system of our nation as well as bringing into play the role as industry catalyzer in the comparison basis. This paper finds some evidences about the roles played by commercial banking in china by carrying out empirical tests using the data from China. The evidences are as follow: In a very high concentration market, commercial banking provides more credits to companies of all industries which is not good for the development of industries. In this situation, the credits are provided to small numbers of companies which lead to uncompetitive markets as well as high returns. As the market concentration becomes lower, commercial banking still provides more credits but to more companies in all industries which is good for the development of industries by promoting the competition of all industries. Besides, in the current market of commercial banking in China, the financing demands of industries are not met, which limit the development of some industries more which are more dependent in commercial banking. The more dependent industries developed better by the lower concentration of commercial banking though the results are not yet significant.In this paper, We provide some evidences to support above ideas. After our theoretical analysis and empirical test, first of all, we found that our commercial banking need to be improved, especially, our state-owned commercial banks need to be adjusted in both position and operation to satisfy big enterprise's demand. Second, we need many mid and small scale commercial banks to satisfy small and mid enterprise's demand. Last, we need deregulate and re-regulate our commercial banking.