Research On The Development Of Investment-Loan Linkage Business Of China's Commercial Banks

In the context of China's economic transformation and upgrading and the promotion of innovation-driven strategies,a large number of technology innovation start-ups have been cultivated,however,the high-risk and high-growth nature of technology innovation and entrepreneurship enterprises does not match the development concept of steady operation of China's banking industry,and at this stage,the main supplier of funds in China's financial market is the banking industry,which makes it difficult for science and technology enterprises to obtain financial support from banks during their growth.At the same time,with the in-depth development of financial disintermediation and interest rate liberalization,the development environment of China's commercial banks has undergone major changes.The original business ideas and business models of commercial banks have not matched the new environment,therefore,the commercial banks urgently need to innovate their business and explore new profit growth points.In this dilemma of resource mismatch,the investment-loan linkage business has entered the vision of the regulatory authorities.The investment-loan linkage can not only promote the transformation of commercial banking business and widen the business boundary,but also create a new way of financing for Innovative SMEs.Investment and loan linkage is a form of "equity+debt" linkage provided by commercial banks to provide financial services to SMEs.Since the government announce the "Launching the Pilot Project of Science and Technology Enterprises'Investment and Loan Linkage" in April 2016,the investment and loan linkage business has achieved initial development in pilot banks and pilot regions and non-pilot banks are also actively exploring investment and loan linkage businesses.Therefore,through an in-depth study of the current status of China's investment and loan linkage business development,and summarizing the experience,it can provide a useful reference for future development of investment and loan linkage business.This article first analyzes the theoretical basis of investment and loan linkage,and then studies the current status of investment and loan linkage business in China through five aspects:investment scale,business entity,business customer,business model and business area.On this basis,the 6 pilot banks and 3 non-pilot banks are selected as samples and use three-stage DEA model to analyze the efficiency of China's commercial banks' investment and loan linkage business.Based on the empirical results,the following conclusions are drawn:the efficiency of the samples has remained at a high level,but the efficiency of various regions has a large gap.The main reason for the inefficiency is the low management level and the mismatch between the organizational structure and business development;Second,the release of the "Pilot Opinions" has promoted the development of China's investment and loan linkage business;Third,the efficiency of pilot banks in the sample is generally higher than that of non-pilot banks,and the business development of pilot banks is relatively stable.Next,in order to explore the reasons for the difference in the efficiency of the sample banks,this paper constructed a Tobit regression model to explore the influencing factors of efficiency of the investment and loan linkage business from the four aspects:government support,technological innovation,high-tech enterprises and financial market development.Then,a case study is conducted,taking the Bank of Beijing,SPD Silicon Valley Bank and China Merchants Bank with relatively successful business examples,and further proposed how China's commercial banks should build an investment and loan development mechanism.Finally,suggestions are made in terms of business management and risk control,the financing environment for small and medium-sized technology companies,government support,the development of technology companies,and the risk-revenue balance mechanism to provide countermeasures and suggestions for the investment and loan linkage business to better serve the real economy and promote the reform and innovation of commercial banks.