A Study On The Impact Of Public Bonds Of Nanjing National Government On The Profitability Of Chinese-funded Commercial Banks In Shanghai From 1927 To 1936

Since the founding of Nanjing National Government in 1927,the Chinese-funded commercial bank has developed rapidly,gradually replacing the traditional financial industry and foreign-funded banks,and becoming an important force to maintain modem social development and serve the government and the public.However,in order to solve the fiscal deficit,the National Government forced the financial industry to transfuse blood to fiscal.The two sides formed an abnormal symbiotic relationship between the government's dependence on government bonds and banks speculative bonds.Chinese-funded banks in Shanghai have benefited a lot from bond investment,but they bear the risk of default of government debt and market risk brought by political and economic instability.Under the dual guidance of political pressure and lure of windfall profits,banks are in the whirlpool of bond investment.From the perspective of Chinese-funded commercial bank,this study uses modern research methods to explore the impact of bonds on the profitability of banks.In terms of content,this paper first reviews the general situation of the development of Chinese-funded banks in Shanghai,combs the cause,sources,benefits and risks of the bond business of bank in detail,and combines with the data of nine representative banks,makes a thorough study of the scale and profit and loss profile of investment bonds of Chinese-funded commerical banks;secondly,centering on bonds,analyses the debt problems of National Government and the relationship between Chinese-funded banking industry in Shanghai and government from 1927 to 1936.It argues that although banks strive to maintain a difficult balance between market and politics through bonds investment,they eventually become political dependencies since they can,t solve the primary issues.Finally,using the data of 52 Chinese commercial banks in Shanghai from 1927 to 1936 as samples,this paper uses econometric methods to analyze the impact of the proportion of bond assets and bond risk on the profitability of Chinese commercial banks in Shanghai from 1927 to 1936.The empirical results show that the proportion of bond assets of commercial bank has a positive correlation with the profitability from 1927 to 1936,while the bond risk has a negative correlation with the profitability,which is in line with the expected assumption of this paper.