Research On The Influence Of Government Intervention On The Efficiency Of Rural Commercial Bank's Capital Use

On August 14,2018,China banking and insurance regulatory commission(circ),together with relevant rural finance departments,hosted the"rural commercial Banks to strengthen corporate governance symposium",which identified 2018 as the"year of strengthening corporate governance" for rural commercial Banks.lt can be seen that the relevant departments attach great importance to th e corporate governance of rural commercial Banks.Rural commercial Banks is the backbone of the rural financial market,which play a decisive role in serving the county economy.Although the corporate governance of rural commercial Banks has been improved and optimized with the continuous advancement of the reform process,there are still many problems,especially the government intervention as the external governance environment of rural commercial Banks,which has been ignored for a long time.However,due to the imperfect corporate governance structure and low efficiency of corporate governance,rural commercial Banks' business development has been restricted.Although the corporate governance of rural conmmercial Banks has been improved and optimized with the continuous advancement of the reform process,there are still many problems,especially the government intervention as the external governance environment of rural commercial Banks,which has been ignored for a long time.A research report of the people's bank of China shows that the proportion of non-performing assets in China's Banks directly or indirectly caused by the government's administrative intervention is as high as 80%.It can be seen that the government's intervention in Banks will have a great impact on the capital use efficiency of Banks.Existing researches mainly focus on the direct impact of government intervention on the capital use efficiency of rural commercial Banks,and seldom study the specific intervention mechanism and path of the government.In recent years,some scholars have found that the government mainly interferes with the credit of rural commercial Banks to affect their capital use efficiency,and the implementation of government intervention process will be affected by the market environment.As a result,credit scale is introduced to this paper as an intermediary variable and market competition as a moderator variable to empirically study the impact of government intervention on the capital use efficiency of rural commercial Banks and the specific path of action.First of all,based on the related literature review and the hand of political support theory,rent-seeking theory,and other theories,this paper study the influence mechanism of government shares,government intervention based on the fiscal deficit pressure of,and government intervention based on the Pressure of political performance have on capital usage efficiency of rural commercial bank,and the mediation effect of credit and the regulating effect of market competition mechanism,accordingly put forward the research hypothesis.Secondly,this paper use the sample data of 46 rur-al commercial Banks from 2012 to 2016 to construct empirical analysis.The research results are as following:the government shareholding ratio has a significant positive impact on the capital use efficiency of rural commercial Banks;Goverrnment intervention based on fiscal deficit pressure has a significant negative impact on the capital use efficiency of rural commercial Banks;Government intervention based on the pressure of political performance demands has an insignificant negative impact on the capital use efficiency of rural commercial Banks;Credit scale plays an partial intermediary role between the government shareholding ratio and the capital use efficiency of rural cormmercial Banks;Credit scale plays an partial intermediary role between government intervention based on fiscal deficit pressure and capital use efficiency of rural commercial Banks;The degree of market competition significantly positively moderates the positive impact of government shareholding ratio on the capital use efficiency of rural commercial Banks;Market competition significantly negatively moderates the negative impact of government intervention based on fiscal deficit pressure on the capital use efficiency of rural commercial Banks;Both of the moderating effect of market competition partly functions through the scale of intermediary variable credit.Finally,countermeasures and Suggestions are put forward according to the empirical results.They are mainly contains four parts:optimizing the government intervention mechanism,perfecting the credit decision-making mechanism,perfecting the market competition mechani sm and prormoting the construction of financial ecological environment.