Tax Burden, Ownership Differences And The Behavior Of Bank Credit

We found that the tax factor is a major factor ofaffecting the survival and development of the bank. The bank is directly related to the operating costs, after-tax income and increase competitiveness. Meanwhile, compared with foreign western market economy, Chinese credit markets has different characteristics, such as credit segmentation system and property ownership difference. Studies have shown that ownership differences will exhibit differentcompanies operating characteristics. Thus banks dominate the direct financing market and the tax burden effects the banks credit form of the difference ownership. It is worth to make further theoretical exploration.After the 2008 financial crisis, the credit risk ofChina’s commercial banks became increasing. In the second meeting of the Twelfth National People’s Congress in March 2014, government also proposed financial reform.Thecondition of the interest rate marketizationis emerging. Thus, faced with the impact of interest rate marketization, how to better promote the development of China’s financial industry under the condition of strengthenexternal supervision,which has a great practical significance.This article followthe mainline of the two theoretical and empirical studies confirmedwith each other.First, from a theoretical perspective, this paper analyzes how tothe tax policies affect the behavior of credit and investment of the financial institutions(commercial banks), i.e. the transmission mechanism analysis.Second, from an empirical perspective, this paper analyzes the tax burden of the financial sector trends over time(the total amount, the structure), and investigate foreigntax of financial sectorcorrespondingly. Using panel data model and based on ownership difference and tax structure, we empirically test the impact of the tax burden on listed financial companies(commercial bank) credit investments to verify the theoretical modelconclusions.Finally, we presents the macro-prudential financial sector tax policy proposals.The dissertation research conclusions are as follows:First, the sales tax will inevitably lead to the optimal bank loan volume decreased, while corporate income tax credit has no effect on the behavior of commercial banks, which is consistent with our empirical research conclusions.Second, the scale of China’s listed commercial banks assets has a positive effect onits credit scale, indicating that China’s commercial banks are in the stage of increasing returns to scale.Third, ownershipdifferences of commercial banks have different way of credit. If commercial banks are state-owned commercial banks, then the ownership of the factors lead to increaseits own credit scale; if commercial banks are joint stock commercial banks, then the ownership of the factors lead to declineits credit scale.