| The banking industry not only has a mainstay in China’s financial industry, but also is the most important force to allocate resources in China. In the other hand, the most significant characteristic of "China Patter" which pushes the economic growth of China is the multi-influence of "The Invisible Hand" and "The Visible Hand". So it is important to research how "The Visible Hand" to influence the banking industry.Firstly, this paper reviews how the government or officer affects the local economy and banking industry, then reviews the history of the city commercial banks and its relationship with the local government. In this paper, the history is divided into five stages, as born, rectification, nirvana, growth, soaring. In each stage, the relationship between local government and the city commercial banks remains tight.In the descriptive statistics, this paper found that the average rate of non-performing asset was 1.82%, the average rate of TOP1 client was 17.16%, and the manufacture, sales and real estate industry are TOP3 industry to allocate loan. Besides, party secretaries have master degree the most and they are mainly from province, local city or local province. Then, after the descriptive statistics, this paper found that the asset quality of city commercial banks and the age of local party secretary have an inverted U-shaped relationship through regression. Further, divided into five groups by the source of local party secretary, this paper found that this result was especially remarkable in the group of the local party secretary coming from local area. In addition, this paper analyzed the relationship between the allocation of various industries of city commercial banks and the age of local party secretary.Finally, based on the previous results, this paper made some suggestions, from the angle of system design, regulatory agencies, and the city commercial banks, in order to free "The Invisible Hand" to let it allocate resources efficiently. |
PDF Full Text Request