Research On The Influence Of Local Government Intervention On The Efficiency Of Urban Commercial Banks

Urban commercial banks have special advantages in serving for small and medium customers.In the meantime,in the period of urban commercial banks,the local government play an vital role on its operation,the local government can directly or indirectly intervene in the operation of urban commercial banks.Then,how will local government intervention affect the efficiency of urban commercial banks?This paper makes use of relevant theories and empirical analysis to discuss this problem.Through theoretical analysis,and based on sample data of 35 urban commercial banks from 2012 to 2020,this paper uses mixed factor data analysis method to synthesize local government intervention index,and uses DEA-Malmquist index method to measure the efficiency value of urban commercial banks.This paper discuss the effect of local government intervention on the efficiency of urban commercial banks and the test of its mechanism,heterogeneity,and robustness.The findings are as follows:First,the local government intervention has a passive influence on the efficiency of urban commercial banks.At the same time,the threshold effect analysis is carried out in this paper,and the results confirm that the local government intervention has a nonlinear impact on the efficiency of urban commercial banks.When the intervention degree is low,the negative impact on the efficiency of urban commercial banks is large.However,when the intervention exceeds a certain level,the negative impact on the efficiency of urban commercial banks is weakened.Second,the influence of local government intervention on different urban commercial banks is different.Provincial urban commercial banks and urban commercial banks located in the develoqed cities,new and second tier city mainly show "political view",while urban commercial banks located in the third,fourth and fifth tier city mainly show "development view".At the same time,this paper studies the different capital adequacy level of city business efficiency is affected by local government intervention,the threshold effect of regression,the results show that when urban commercial banks’ capital adequacy ratio is low,the efficiency of local government intervention to urban commercial banks will produce negative influence,when the urban commercial banks’ capital adequacy ratio is higher,the local government intervention in the negative influence on the efficiency of the city firm will increase.Third,in the case of financial pressure and economic growth pressure,the negative impact of local government intervention on the efficiency of urban commercial banks will be enhanced.Fourth,local government intervention has a greater negative impact on unlisted city firms.The innovation is mainly reflected in two aspects:First,the innovation of research method.The method used in this paper is mixed factor data analysis method,which can deal with mixed variables and variables are not independent of each other.At the same time,the research index is innovated.This paper uses the method of web crawler to add the frequency of local government and urban commercial banks appearing in the news to measure their closeness.Also choose the urban commercial banks’ shares of local governments,whether the local government is the first big shareholders,whether urban commercial banks executives appointed by local government or by local government officials as a background,with local government executive director of executive director supervisors fixed investment as a share of GDP,the proportion of state-owned economy indicators,synthesize the final local intervention index.Second,this paper not only examine the basic regression,but also examine the threshold effect of local government intervention,namely local government intervention effects on the existence of nonlinear urban commercial banks efficiency.In addition,this paper adds the cross-term of local government intervention,fiscal revenue and expenditure pressure and economic growth pressure into the empirical model to investigate the influence mechanism,to enrich the research.