The Impact Of Capital Market Financing Scale On The Bank Lending

The main external financing channels of non-financial corporate are commercial bank loans and capital market financing,in our country,both in absolute size and scale of social financing,commercial bank loans is far in excess of the capital market financing,but capital market financing maintained faster growth.At the same time,the academic question whether or not market-oriented financial structure is superior to bank-oriented financial structure has been in debate for a long time.This article choose from where the non-financial corporate finance itself to discuss financial structure problem,research is the expansion of the capital market financing is opportunity or challenge for commercial bank loan business.Theoretically and empirically,study shows that,in meet the demand of financing,capital market financing and commercial bank loans are alternative and also have complementarity,but on the whole,capital market financing is an alternative for commercial banks loans.Both capital markets and the commercial bank loans can satisfy the financing needs of the real economy,the homogeneity of the function determines the substitution relationship between them,so,the comprehensive low cost financing mode will replace comprehensive high cost of financing.At the same time,facing different kinds of financing demand,capital market issue and commercial banks loans each have advantages and disadvantages in manyaspects.Stock market is more adept at fostering innovation enterprise,the bond market is more adept in the service of a mature enterprise by low financing cost advantage obviously,bank loans have more effective supervision mechanism to the enterprise,which will make complementary relationship in the capital market financing and bank loans.Stock market need banks for the effective supervision of the enterprise,that is,the increase of bank loans directly stimulate the capital market financing,and once the stock market developed innovative enterprise,growing companies will increase the demand for bank loans,hat is,increases in capital markets will form the increase of the demand for bank loans in the future.Various mechanisms make the increase of capital market financing promote the increase of commercial bank loans,and they are in complementary.Based on Vector Error Correction Model,this paper studies the cointegration relationship between the market financing scale and the commercial bank lending in China,and the paper studied the Impulse Response Function.The empirical results show that the capital market financing is both in the alternative and complementary relationship with commercial bank loans,and on the whole,they are alternatives.Since then,the article concludes that "capital market financing and commercial bank loans have both alternative and complementary relations,and substitutability is greater than complementarity.We subdivided capital markets into the bond market and stock market further,the empirical results show that the bond issuance is alternative to the bank loans as a whole,complementarity is not significant,stock issuance is complementarity to the bank loans as a whole,complementarity is not significant,the alternative is not significant.No significant substitution of equity financing to bank loans may result from that the Chinese stock financing policy constraint is bigger,leading to that stock financing can't effectively meet the financing needs of enterprises,the equity financing,there for,has no significant alternative effect on bank loan.Under the further rapid development of capital market in China,the bank-oriented financial structure will change and the status of bank loans will decline,challenges bank lending faces will outweigh the opportunities.Facing the rapid development of capital market financing scale,capital market financing of social financing scale is in the rising trend,the commercial banks need to make good use of the opportunities brought by the development of capital market to expand their loan business scale,on the other hand,they should actively expand the other business to comply with the challenge that percent of the loan in social financing will fall.