| In China,the financial system is not yet mature,the financing market is still the indirect financing market which is the bank system.City Commercial Bank as part of the Chinese banking system,its predecessor is the city credit cooperatives.With the development of the economic situation in.the 1990s,the drawbacks of the city credit cooperatives were constantly exposed,resulting in a large number of bad debts.Then the reform of financial system in 1998 carried out a large-scale restructuring on the city credit cooperatives.Meanwhile,in order to achieve a smooth transition,there was to introduce local government shares in the process of cleaning up the bad debts of the city credit cooperatives,which is the starting point of the City Commercial Bank.In 2015,Shang Fulin,the chairman of the China Banking Regulatory Commission,pointed out that "from a historical point of view,the City Commercial Bank is the product to resolve the local financial risk," which gave the historical position for the birth of the City Commercial Bank.Since its inception,the City Commercial Bank has experienced a growing development process,and becomes the third echelon in China's banking system.And according to the scale of operation of the city commercial bank and its natural link with the local economy,there is the market orientation which is "giving financial support for small and medium enterprises and paving the way for the local economy."Based on the market orientation of city commercial bank,this paper is devoted to exploring the role of city commercial bank in regional economic development.However,the current researches have been limited by the difficulties of the construction of micro-data indicators and endogenous issues,these researches didn't carry on empirical analysis about the relationship between the city commercial bank and the regional economic development,and the academic community has not yet formed a consensus on this issue.In order to clarify the role of City Commercial Bank in the process of regional economic development,an important aspect is to consider the impact of local governments.In the process of credit allocation,there is no doubt that the CityCommercial Banks are inevitably subject to intervention from local governments,which including the direct intervention and the indirect intervention.On the one hand,due to historical reasons,local governments have a higher proportion of holdings in City Commercial Bank.On the other hand,due to geographical reasons,local governments hold a large number of administrative resources which areclosely related to the development of the City Commercial Bank.Therefore,comparing with large state-owned banks and joint-stock banks,the capital allocation of City Commercial Bank has a more vivid and more specific regional political orientation.The specific performance of the local government intervention is that there is a clear bias between the state-owned enterprises and non-state-owned enterprise in resource allocation.Therefore,from the perspective of the efficiency of capital allocation of industrial enterprises,this paper refers to the calculation method of capital allocation efficiency proposed by Wurgler(2000).And then this paper uses the relevant samples of the industrial enterprise database,according to the nature of the enterprises,respectively to measure the overall capital allocation efficiency of enterprises in state-owned enterprises and non-state-owned enterprises.On the basis of this method,we carry on the quasi-natural experiment,and adopt the double difference model to evaluate the influence of the establishment of city commercial bank on the regional capital allocation efficiency.In addition,the time span chosen in this paper is from 2003 to 2009,which the 2005 was called the year of China's financial reform,the government introduced a lot of policies,such as interest rate reform,split share,state-owned commercial banks listed.Considering these measures may influence the city commercial banks' effect in the regional capital allocation efficiency,in the empirical section,after the enterprise is grouped by ownership,we use the double differential model for calculation in the two different time periods,the one is the full sample period and the other is the period after financial reform(after 2005).In addition,in order to ensure that the model estimation results are not affected by endogeneity,this paper also uses the bidirectional fixed effect model to estimate the above problems.This paper finds that City Commercial Bank has reduced the efficiency ofcapital allocation of industrial enterprises as a whole.Furthermore,based on the empirical analysis of the sample data according to the nature of the ownership of enterprises,it is found that the City Commercial Bank have not improved the capital allocation efficiency of the non-state enterprises in the region,but have improved the capital allocation efficiency of the state-owned enterprises.The above conclusions show that in the process of capital allocation of City Commercial Bank,the government intervention is not neutral,but has a property bias,and the direct performance is that comparing to non-state-owned enterprises,the state-owned enterprises are more likely get loans from City Commercial Bank.And this is not consistent with function positioning of City Commercial Bank,which is "to provide financial support for small and medium enterprises." However,in the capital allocation process of state-owned enterprises,City Commercial Bank is still in accordance with market principles.In addition,by comparing the empirical results of the whole sample period and the period after the financial reform,we can conclude that the financial reform in 2005 has had an important impact on the City Commercial Bank in improving the capital allocation efficiency of state-owned enterprises. |
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