The Impact Of Bailout Policies For Small And Micro Enterprises On Banks’ Risk-Taking Under The COVID-19

Under the COVID-19,the Chinese government and regulators implemented bailout policies such as the extension of repayment of principal and interest by small and micro enterprises,specifically to alleviate the financing pressure of small and micro enterprises affected by the COVID-19 and reduce their financing costs.This paper analyzes the current situation of small and micro credit business,summarizes the relevant research conclusions,then studies the impact of the small and micro enterprise rescue policy on the risk-taking of banking institutions。This paper collects macroeconomic data and the credit data of 27 Tier-1 sub branches under the jurisdiction of Bank of Beijing branch from the first quarter of 2018 to the third quarter of 2021.and forms balanced panel data,using the individual time double fixed effect model,regression analysis of the impact of the small and micro enterprise rescue policy on bank risk-taking,that is,the small and micro loan amount of 27 first-class branches represents the quantification of the small and micro enterprise rescue policy implemented by the banking institutions within the jurisdiction of the Bank of Beijing,the bad loan amount of each branch measures the degree of risk-taking of banking institutions,and empirical regression analysis of the impact of the small and micro loan amount on the amount of non-performing loans;Then empirical regression analysis was made on the sample data from the first quarter of 2018 to the fourth quarter of 2019 and from the first quarter of 2020 to the third quarter of 2021,and the direction and extent of the impact of small and micro credit on non-performing loans before and after the implementation of the policy of delaying the repayment of principal and interest by small and micro enterprises during the epidemic period were compared;Finally,the data samples before and after the epidemic were analyzed by grouping regression according to the credit scale.The study found that the impact of the small and micro enterprise rescue policy on bank risk-taking was not obvious when the credit scale of banking institutions was small;When the credit amount of banking institutions reaches a certain scale,the amount of small and micro enterprise loans of institutions is positively correlated with the amount of non-performing loans.Before and after the implementation of the phased deferred repayment of principal and interest policy,the effect of the size of small and micro loans and bank non-performing loans is different,but the positive correlation between the amount of small and micro loans and the amount of non-performing loans has not increased,that is,the bailout policies for small and micro enterprises under the COVID-19 have not increased the risk taking of banks.