Research On The Relationship Between Credit Rationing Of Chinese Commercial Banks And The Financing Of Banks

Credit rationing is a kind of phenomenon that under the influence of asymmetric information, some borrowers can get the loan or part of the loan, while another part of the borrower can't even pay higher interest because of adverse selection between banks and borrowers. In recent years, due to the economic downturn and financial disintermediation, the profit growth of bank traditional business keep declining, the overcapacity also leads to banks NPL increased. Under the circumstance, most banks have reduced the loan. On the other hand, industries that developing rapidly are in urgent need of bank loans. To achieve the goals of the bank "keep stabilize while serve the economy", and in order to offer financial support, we must deal with the relationship between banks and companies, try to reduce credit rationing due to adverse selection.Credit rationing is a theory based on asymmetric information, it has different performance under different economic systems, that there was no uniform view yet. On the basis of the reference of previous studies on the theoretical and econometric models, this paper analysis the produce of credit rationing, as well as the impact of credit rationing and the method of how to deduce it. Providing theoretical basis for financial evolution and improve the financing relationship between companies and banks. At the beginning of this paper we analysis the produce of credit rationing with S-W model, then analysis the financial statements of the companies on the stock market with econometric models. Finally we found of big companies can always get loans easily even their profit grow slowly. On the contrast, it's more difficult for emerging industries. So there was absolutely credit rationing in our credit market. We also found the level of credit rationing can be reduced with the development of emerging industries. This conclusion contribute to guiding strengthen of information disclosure and improve the financing relationship between companies and banks.