A Study On Impacts Of Banks' Off-balance Sheet Innovative Business On The Credit Availability

Innovation is the driving force for the development of commercial banks,and the continuous financial innovation makes the sustainable development of commercial banks.In the context of coexistence of various challenges and opportunities,China's banks allocate more resources to the off-balance sheet(OBS)business,constantly innovate and create differentiated financial service products,to improve their market competitiveness.As an financial intermediaries that move funds from the surplus sector to the shortfall,banks are responsible for serving the entity economy.As a kind of banks' innovative business,OBS activities may affect their credit behaviors,thus affect the credit availability.In the context of innovation of OBS business,exploring the impact of banks' OBS innovative business on the credit availability has an implication to normalizing the development of banks' OBS sheet business to enhance the efficiency of servicing the entity economy.This paper divides off-balance sheet innovative business into innovative service business,guarantee and commitment business and financial derivatives business.First,analysing the mechanism of the impact of three types of OBS innovative business on the credit availability on the basis of the existing theories.Secondly,we use the data of 39 banks in China from 2008 to 2015 to carry out the empirical test.First regress with the sample included 39 banks,and then respectively with the state-owned banks,the joint-stock banks and the urban commercial banks samples.The empirical results are as follows:on the whole,the banks' innovative services business improves the credit availability while the business of the joint-stock banks reduces it.The guarantee and commitment business reduces the credit availability,especially the state-owned banks and the urban commercial banks.The financial derivatives business also reduces the credit availability,mainly the joint-stock banks.The empirical conclusion of this paper reveals that some of the OBS business innovations of our commercial banks don't improve the credit availability of the entity economy effectively and deviate from the direction of servicing the entity economy,so that it needs to normalize the development of banks' OBS sheet business.