Capital Constraint,Credit Behavior And Performance Of Rural Commercial Bank

With the continuous deepening of financial reform,the soundness of China's financial system has received more and more attention.In the "China Financial Stability Report(2018)" issued by the People's Bank of China in November 2018,the soundness of China's financial system was comprehensively assessed.The evaluation results show that there are 67 rural commercial banks nationwide in the 8-10 rating(the higher the rating,the greater the risk).The People's Bank of China will take early corrective measures such as supplementing capital and controlling asset growth for banks with poor rating results,which indicates that China's rural commercial banks will face stricter capital constraints in the future.Faced with strict capital constraints,how will the performance of rural commercial banks change? At this time,whether the capital of rural commercial banks will play a buffering or incentive role;as the main business of rural commercial banks,how does capital constraint pass credit behavior? Affects its performance;whether the current degree of impact of capital constraints on rural commercial banks on listed and unlisted rural commercial banks has the same theoretical and practical significance for the study of these issues.First,based on theories of effective financial regulation and capital buffer theory,this paper studies the impact mechanism of capital quantity constraints and capital quality constraints on the performance of rural commercial banks,as well as the mechanism of the mediation effect of credit behavior as a mediation variable.This brings forward the research hypothesis of this paper.Secondly,using the unbalanced panel data of 49 rural commercial banks across the country from 2012 to 2018,a panel regression model was constructed for empirical analysis.The empirical results show:(1)the impact of capital constraints on the performance of rural commercial banks.There is a negative correlation between quantitative constraints and the performance of rural commercial banks,and a negative correlation between the quality constraints and the performance of rural commercial banks;(2)The impact of capital constraints on the credit behavior of rural commercial banks.Quantitative constraints are significantly negatively related to the rate of credit expansion of rural commercial banks,and quality constraints are significantly negatively related to the rate of credit expansion of rural commercial banks.Quantitative constraints are significantly positively related to the proportion of rural commercial banks' loans to agriculture.The proportion of loans was significantly negatively correlated;(3)The role of credit behavior in the impact of capital constraints on the performance of rural commercial banks.The rate of credit expansion played a part of the intermediary role in the process of capital constraints affecting the performance of rural commercial banks.The intermediary effect of the proportion in the impact of quantitative constraints on the performance of rural commercial banks is not significant,the intermediary effect in the impact of quality constraints on the performance of rural commercial banks is significant,and it plays a part of the intermediary effect;The results are robust,and capital constraints have a greater impact on listed rural commercial banks.Finally,according to the empirical results,the countermeasures and suggestions for improving their performance are put forward from the two aspects of the regulator and the rural commercial bank itself.