The Mutation Of Inductive Effect Research Based On Developing Finance

Finance is the study of resource allocation across time and space, in which that capital allocation efficiency is the core. In the financial system, political finance is a special area. In 1994, the China Development Bank, Export-Import Bank and the Agricultural Development Bank’s establishment mark the establishment of political finance system. At the time, the direct cause of the establishment is to deal with the commercial banks’ gathered bad debts. However, the establishment of policy banks is still hoped to share the financial and commercial banking functions, undertake investment policy, through specialized banks to improve efficiency in the use of financial resources.From the beginning of the political banks establishment, for a long time, low efficiency in capital allocation of memory problems was widespread, their bad loan ratio was very high. Policy banks’ inefficient operation was mainly due to traditional government-led allocation, that the project by the government, the loss reparation from the financial subsidies. Under the traditional mode of banking policy banks had no choice initiative in the project, nor to encourage banks to monitor the project performance, "soft budget constraint" and "ratchet effect" obvious. With the 1997 Asian "financial crisis" and China’s accession to WTO in 2001 to recognize China’s banking industry-wide enhancement of risk management, the importance of enhancing business performance. At this time, the China Development Bank is a typical policy banks began to explore the road of development finance and innovation. This model is developed by reference, digestion and absorption of foreign advanced experience and based on the conditions of the policy banks operating system. The main mechanism of development finance is through changing the traditional constraints of policy in financial incentives to achieve efficiency in promoting the use of funds. Dilute its main logic is self-financial support to strengthen the banking business incentives, development financial institutions authorized to implement the initiative in project selection and enjoy project benefits, while development financial institutions according to their own advantage, and strengthen the traditional policy and government, and through benefit sharing mechanisms encourage government involvement in the project selection, management and supervision.But the developing finance also caused some new problems, especially in the development of the market deepening of developing financial institutions; these problems will make the banking system competition and private capital investment entrance becoming complicated. Based on the financial mechanisms, the policy banks operating performance achieve self-improvement and also enhanced the cooperation of local governments, based on the interests of consistency, it’s easy to form the local government-development financial institutions collusion; this collusion mechanism where government, development financial institutions have the impulse to expansion of investment, investment expansion are likely to lead to excess capacity, difficult issues such as changes in industrial structure; this conspiracy is also to cause the local government monopoly of social resources, which will forbid other business investment. Taking into account the future commercial reform of financial institutions, the development of rational choice-based financial institutions, and the traditional function of induced substantial changes will occur. Induction of the traditional function of financial policy is the basic function of policy banks is also a major function of basic logic of its existence the leading financial policy to promote accumulation of social capital investment and industrial development derived from "information overflow" the support of business organizations and guidance; but in the development of financial model development financial institutions under the risk control project, based on and consistent with the interests of local government collusion and protection of information dominance and resource allocation priorities, under the conditions of rational choice-based development financial institutions will be self-executing investment projects rather than give later "investment options" to commercial banks and private investment.Researching the inductive effect of financial institutions has important theoretical and practical significance. First, from a theoretical point of view, will deepen the research of financial functions, this article discussed, although tentative, but this is the first attempt on policy finance innovative research, previous research has focused on the policy-induced business investment and finance inductive effect on economic growth, but commercial functional changes may occur not involved. Second, from a practical sense, now, the policy banks turns to the commercial banking system reform is a major event of political finance reform, how to promote reform of policy banks to encourage market competition and market development is a very important issue, so explore policy banks’behavioral change under the conditions of commercial operation is important to rationally justify political finance reform.