Research On The Impact Of Related Lending On Business Performance Of Large And Medium Sized Commercial Banks In China

China as a typical bank dominated financial system,the method of enterprise financing is concentrated on indirect ways.The risk exposure level and system stability of the banking industry play a vital role in the smooth operation of the national economy.In the ideal market economy,in addition to the active intervention from the government,the bank's allocation of credit resources should be different from the interest of the loans they wish to pay according to the social production efficiency of different economic sectors,and flow to the social production department that can produce the greatest economic benefits.However,the unfair economic phenomenon of related loans has broken the law of market economy and caused the mismatch of credit resources.Moreover,the empirical study shows that the associated lending of urban commercial banks in China has increased the level of bank loan risk and damaged bank performance.Foreign scholars study have significant differences in the impact of the related loan,which are the following three kinds of academic views: first,related loans can play a governance effect,improve bank performance;the second is the neutral view that the related loan does not affect the performance of the bank;and the third is the looting view that the related loan undermines the bank performance.In this paper,twenty-five large and medium-sized commercial banks in China are taken as samples,and the regression analysis is carried out by system generalized method of moments(SYS-GMM).The relationship between the related loans and the total asset returns of the bank performance indicators from 2007 to 2016 is tested.The results show that,in general,the effect of related loans on the rate of return on bank assets is nonlinear,and there is a "inverted U" relationship between them,but in the sample test,the relationship between the two indicators shows a significant difference in different type of commercial banks.In addition,this paper systematically reviews the current fragmentary research on the related loan problems,from the theoretical basis of the associated loans to the economic impact of the related loans,and by using the economic analysis method from the principal-agent theory of corporate governance,the transaction cost theory and the scope economy theory,a more comprehensive investigation of the related loans is made.In the last chapter,combining the full text theory analysis,the empirical analysis and the current research status of the current related loan,this paper gives specific policy supervision suggestions,and expounds the methods and directions that can be taken to further study the related loan problems of commercial banks.This paper's study on the related loan problem of large and medium-sized commercial banks.It which makes up for the shortage of the existing research focus on the urban commercial banks and the three kinds of relationship between the related loans and the rate of return on assets,raise the understanding to the different types of bank's related loans and this paper provide direct evidence for regulatory authorities to implement more targeted supervision measures.