Theoretical And Empirical Studies Of Credit Discrimination——Based On The Bank Utility Model

Bank credit has always been the most important funding source in China. However, due to historical reasons, credit discrimination becomes a unique phenomenon in China. Credit discrimination means that compared to SOE, private enterprises can hardly have enough credit support, and the credit price for private enterprise is much higher than SOE. This phenomenon has been restricting the development of China’s private enterprises.Meanwhile we found that when economic situation got worse, banks would always reduce their credit amount. And we found the private enterprises would suffer bigger impact in this situation. In order to better solve the credit discrimination problem, in this paper the credit discrimination phenomenon together with the economic situation were studied.Summary of previous literatures, we found that, at present the research on bank credit discrimination mainly stay in the empirical aspect, rarely involved in the theoretical model. From the point of bank loans’utility, we established a theoretical model of bank loaning behavior. Based on this utility model, we found that credit discrimination phenomenon will weaken when the economic situation improves.To support our theoretical model, we did empirical analysis. We did descriptive statistical analysis, Oaxaca-Blinder regression analysis and panel data model analysis. The empirical analysis also supported our theoretical model. We also fund that the bank credit discrimination is mainly reflected in the quantity, the credit price discrimination was not as serious.Based on our research, we recommend supporting private enterprise policies should give more consideration to support the number of loans, at the same time, it should consider the impact of the current economic situation.