The Study On Small And Medium-Sized Banks' Property Right Structure Impact On Allocation Of Credit Funds In China

Small and medium-sized bank is an important part of Chinese financial system.Its market share in the credit market increases year after year,which makes great contributions to the development of the local economy.At the beginning of the establishment,small and medium-sized banks got support from the local government.After many years of development,small and medium banks are still inextricably linked with the local government.The majority of its property rights are still controlled by local government.Accordingly,the collocation of credit funds is affected inevitably.More specifically,loan flows concentrate in state-owned enterprises and government related projects.And many private enterprises with growth potential fail to obtain sufficient financial support.To this end,this article tries to clarify the relationship between small and medium sized banks and the local government from the perspective of the property right structure,in order to optimize the allocation of credit funds.At the first,this paper reviews related research on commercial banks' property right structure and credit funds allocation.The existing problems and the research space are briefly analyzed.Then,based on the basic theory of the property right structure and the credit funds allocation,this paper discusses the influence mechanism of commercial banks' property right structure on the allocation of credit funds in detail.Next,the paper researches the status of small and medium banks' property right structure and credit allocation respectively.First,uses the ultimate ownership analysis to investigate the current situation of small and medium-sized banks from the perspective of property attribute and property concentration.Second,studies small and medium-sized banks' credit funds allocation from the aspects of configuration size,structure and quality.At the same time,chooses the proportion of manufacturing industry loans and the DEA efficiency value as observation index,to measure the efficiency of credit allocation from the macro and micro levels.Besides,uses the regression analysis model to verify the relationship between small and medium-sized commercial banks' property right structure and capital allocation efficiency.The results show that the macro allocation efficiency of credit funds in Chinese small and medium-sized banks is low,as same as the micro level.The observed variables of small and medium-sized banks' property attribute – the character of ultimate largest shareholder showed a negative correlation with allocation efficiency of credit funds on both macro and micro levels,and significance level was high;the observed variables of small and medium-sized banks' property concentration--the shareholding ratio of ultimate largest shareholder also was negatively correlated with the efficiency of the credit allocation on both macro and micro levels.It can be judged that the negative impact of ownership structure on the credit funds allocation exists objectively in Chinese small and medium-sized banks.According to the above conclusion,this paper puts forward some policy suggestions on reducing the government shareholding ratio and the government intervention motivation to get better property structure and credit allocation.