The Influence Of Liquidity Shock On Bank Credit Supply Fluctuations

The development of an enterprise cannot be separated from the support of bank credit,and the issuance of bank credit is based on bank's liquidity.In recent years,the interbank borrowing business has developed rapidly and has become an important means for banks to supplement short-term liquidity.After the outbreak of the “money shortage” incident in mid-2013,the inter-bank lending rate hit record highs,surging more than six times above the mean.At the same time,there has been a massive reduction in bank credit,and it has been difficult for many companies,especially for SMEs,to obtain credit support from banks.Such a large-scale credit crunch will not only seriously affect economic development,but also arouse widespread concern in the academic community.Whether it is from the perspective of maintaining a healthy and orderly development of banks,or the perspective of ensuring that the credit needs of enterprises are met to promote the sustained and stable development of the national economy,a study of the impact of interbank borrowing funds on liquidity shocks and fluctuation in bank credit supply will be conducted.The study is of great significance.The main research purpose of this paper is the relationship between liquidity shocks and bank credit changes.However,considering the effects of bank characteristics and company characteristics on credit fluctuations,this paper also incorporates bank characteristics,company characteristics,and core interpretations in empirical regressions.The cross terms of variables explore how exactly the three relationships are.This article is mainly divided into the following five parts.First of all,it elaborates the research background and significance of the article,and summarizesthe existing research results of domestic and foreign scholars in related fields.In the second part,the theoretical analysis was carried out to provide a theoretical basis for the following empirical research.The theoretical analysis is mainly divided into three levels.The first is the analysis of the basic relationship between the liquidity shock and the change of credit supply,followed by the influence of bank characteristics,and finally the influence of company characteristics.The third part introduces the source of data,the choice of variables and the construction of the model.The fourth part mainly analyzes the empirical results,and at the same time,it conducts a robustness test to prove the reliability of the conclusions in the paper.In the last part,the paper summarizes the empirical results and summarizes three conclusions.Based on these three conclusions,it proposes corresponding policy recommendations to banks,enterprises,and government and regulatory authorities.The conclusions of this paper mainly include the following three points: First,when a commercial bank encounters a liquidity crisis,the proportion of total interbank borrowing funds to its total assets has a significant impact on its lending activities.The two are negatively correlated,that is,the higher the proportion of interbank borrowing funds,the greater the reduction in their loans.Second,the characteristics of banks have a certain influence on the credit changes caused by fluctuations in interbank lending.For banks with different micro-characteristics,the proportion of interbank borrowing funds does not have the same effect on loan changes.Specifically,the scale of assets has a significant positive effect on loan changes,while the current ratio has a negative effect.The non-performing loan ratio and the bank's return on assets did not have a significant correlation with credit changes.Third,there is also a correlation between the company's characteristics and credit changes caused by fluctuations in interbank lending.There is a positive correlation between the size and establishment time of the company and the change in the loan.The ownership attribute of the company has no significant effect on the loan changes.