The Impact Of Banking Competition And Digital Inclusive Finance On The Financing Constraints Of SMEs

Small and medium-sized enterprises constitute an indispensable part of China’s economy,and their importance to economic development and social stability will become more and more significant after the outbreak of the epidemic in 2020.How to reasonably support the development of small and medium-sized enterprises and solve the financing problems of small and medium-sized enterprises have been highly concerned by the government,enterprises and academia.In view of the impact of banking competition on the financing constraints of small and medium-sized enterprises,there have been different views in the academic circles.With the progress of big data,Internet and other technologies and their application in the financial system,the rapid development of digital Inclusive Finance has also played an increasingly important role in easing the financing constraints of small and mediumsized enterprises.In order to explore the relationship among banking competition,digital Inclusive Finance and financing constraints of small and medium-sized enterprises,this paper constructs the Herfindahl Hirschman index(HHI)based on the data of regional banking outlets,and takes the Peking University Digital inclusive finance index as the judgment standard of the development level of digital Inclusive Finance,combines with the cash-cash flow sensitivity model,uses the small and medium-sized board、small and medium-sized enterprises listed on GEM and science and technology innovation board from 2011 to 2018,studies the impact of banking competition and digital Inclusive Finance on the financing constraints of small and medium-sized enterprises.The results show that,in general,the financing constraints of SMEs can be alleviated by the promotion of banking competition and the development of digital Inclusive Finance,and the two show complementary effects in this process.In the regions with high digital inclusive finance index,banking competition can better alleviate the financing constraints of SMEs.According to the conclusion of this paper,it suggested that the government should further improve the competition level of the banking industry on the basis of the implementation of financial supervision.At the same time,the regional governments should guide and promote the development of digital Inclusive Finance,and reasonably use digital technology to support the capital demand of small and medium-sized enterprises.Finally,banks should make full use of the development dividend of digital Inclusive Finance,increase the R&D and investment of related products,better serve the customers of small and medium-sized enterprises,and occupy a dominant position in the competition of inclusive financial market and banking industry.The innovation of this paper is mainly to use the data of Peking University Digital Inclusive Finance,combined with HHI index to construct the cash-cash flow sensitivity model of small and medium-sized enterprises,empirically study the impact of banking competition and digital Inclusive Finance on the financing of small and medium-sized enterprises,and analyze the interactive utility of the two in easing the financing constraints of small and medium-sized enterprises,as well as the difference of the impact of banking competition on the financing constraints of small and medium-sized enterprises in different levels of development of digital Inclusive Finance.It has a certain reference value for the follow-up development direction of banking and digital Inclusive Finance.