The Effects Of Regional Economic Development Pressure On Lending Activities Of City Commercial Banks In China

Since the establishment of China's first city commercial bank in 1995,after years of development,city commercial banks have become an important part of China's banking industry.By the end of 2015,the number of city commercial banks in China had reached 133,with more than 370,000 employees,total assets of 22.68 trillion yuan,and a breakthrough of 20 trillion.By analyzing the development process of the city commercial banks,we can find that the city commercial banks have always had a close relationship with the local governments.The purpose of their establishment is to provide financial supports to local SMEs and serve local economic development.At the same time,although the proportion of the people's livelihood indicators in the central government's inspections of local governments has gradually increased in recent years,the current stage is still to examine various economic development indicators.Economic development is a long-term process,and economic indicators can only represent the development of a specific point in time.This assessment mechanism makes local governments have greater pressure to develop the economy in the short term.As the product of China's financial transformation,the phenomenon of government holding is very common in city commercial banks Under the current situation that local government financing channels are limited,fiscal revenue and expenditure are unbalanced,and the control of state-owned banks is weakened,when local governments face greater economic development pressure,their influence on urban commercial bank loan behavior through government platforms will more obvious.From the perspective of local economic development pressure,this paper builds a local economic growth stress index based on the loan data of China's urban commercial banks from 2009 to 2015,constructs the pressure index of local economic growth by using economic indicators such as regional economic growth target,examines the impact of local economic development pressure on the loan behavior of urban commercial Banks,and analyzes the relationship between the loan behavior of urban commercial Banks and non-performing loans,and hope to have some reference significance for urban commercial banks that are in transition.First of all,the article briefly analyzes the relationship between government behavior and regional economic development and the factors affecting commercial banks at home and abroad.Secondly,this paper elaborates on the development status of China's urban commercial banks from different angles.Combining some loan data,this paper analyzes some problems faced by Chinese city commercial banks at present.After that,this paper combines the influencing factors of urban commercial bank loan behavior,and theoretically deduces the influence mechanism of local economic development pressure on urban commercial bank loan behavior,and further proposes the main Hypothesis.Then,by constructing panel data regression model,empirically test the impact of local economic development pressure on urban commercial bank loan behavior.Finally,this paper combines the empirical results,puts forward corresponding conclusions and puts forward corresponding policy recommendations for the future development of city commercial banks.Through empirical research,this paper finds that:(1)When the pressure of local economic development is greater,the total amount of loans of city commercial banks will also increase;(2)The increase of the pressure of local economic development can lead to the increase of the loan risk of urban commercial banks.(3)In the central and western r.gions,the increase in local economic development pressure will lead to an increase in the concentration of loans by city commercial banks.This phenomenon is not obvious in the eastern region.The research conclusions of this paper enrich the research on the loan behavior of city commercial banks,and further explore the role of local government behavior in the operation of urban commercial banks.It provides empirical evidence and policy recommendations for the transformation and development of city commercial banks.The reform of city commercial banks should start from the following aspects: First,it is necessary to strengthen the internal structure optimization of city commercial banks,and establish a scientific and perfect loan approval and distribution system and risks.Control systems to reduce external interventions;second,local governments need to implement the scientific concept of development.While paying attention to local economic indicators,we must pay more attention to the quality of development,and include more people's livelihood indicators and environmental protection indicators.The road to sustainable development may be a good way to achieve the healthy development of city commercial banks.