Study On Influence Of Official Promotion And Government Property For The Credit Of City Commercial Bank In China

In recent years, the city commercial banks develop rapidly in China, and they provide important credit support in local economic development. But Their behavior have also been affected by the local government. So, what is the mechanism of the local government intervention in city commercial bank’s credit decision-making? This article will make a empirical explanation by answering the following three core problems. First, we will study the local government officials of promotion incentive effects on city commercial bank credit. Second, we will study the local government property effects on city commercial bank credit. The third is that local officials under the action of promotion incentives, through the government property to affect city commercial bank credit. Officials of promotion incentive indicators mainly include:its own characteristics and local economic growth. Government property refers to the local government ownership of city commercial banks. In terms of city commercial bank credit, we looked at them in terms of the number of credit and credit quality indicators. Finally, Finally, we has carried on the empirical analysis by using the OLS estimation method on the basis of2006-2013panel data of the city commercial banks. The results found that the more promotion incentives for local government officials, the greater of the city commercial bank credit scale. But in addition to the official age and pass60years old or not in regression significantly, other variable regression results are not significant. The bigger the stake of local government, the bigger city commercial bank credit. But the regression results are not significant. In the regression results of city commercial bank credit quality aspects as follows. The more promotion incentives for local government officials and the bigger the stake of local government, the worse that the city commercial bank’s credit quality. But in addition to the official tenure in regression significantly, other variable regression results are not significant. Therefore, our conclusion is that the behavior of local government intervention in city commercial bank credit might bring bad influence for credit scale and quality of city commercial banks. But the empirical result shows that the overall effect is not significant.