| The world is undergoing the changes unseen in a century that are accelerating,and the development environment facing the Chinese economy has become more profound and complex.From an external perspective,the rapid changes in the world’s economic and political environment have added uncertainty to its growth.From an internal perspective,the demographic dividend is gradually disappearing,and the factor-driven extensive growth is unsustainable.Therefore,how to improve resource allocation efficiency has become a major issue facing China.As the core department connecting the real economy and financial resources,banks play an important role in optimizing resource allocation.With the continuous advancement of financial system reform,China has established a diversified financial competition mechanism and emerged a group of financial institutions centered on local small and medium-sized banks,greatly enhancing the competitiveness among banks.Against the backdrop of financial monopoly and credit discrimination,local small and medium-sized banks,as an important functional complement to large stateowned banks,have had a significant impact on resource allocation efficiency.The intensification of competition in the banking industry has become a typical feature of current financial development.As developed countries’ monetary policies further tighten,cross-border capital flows caused by the spillover effects of monetary policy have become an important source of cyclical financial volatility,and there is a close relationship between bank competition and cyclical financial volatility.Therefore,scientifically evaluating the impact of banking competition on overall resource allocation efficiency under the background of globalization,systematically analyzing the connection between heterogeneous competition based on banks’ subjective risk preferences and resource allocation efficiency,and revealing how the spillover effects of monetary policy affect the relationship between bank heterogeneous competition and resource allocation efficiency have important theoretical value and practical significance for improving resource allocation efficiency through high-quality development of the banking industry and responding to external shocks without triggering systemic risks.The article constructs a theoretical model of competition and resource allocation efficiency in the banking industry,analyzes the overall impact of banking competition on resource allocation efficiency,introduces time-varying risk preferences of banks,explores the differences in bank risk-taking behavior under different monetary policy shocks,and their roles in the relationship between banking heterogeneity competition and resource allocation efficiency.Based on this,a trade network model is constructed to reveal the channels of risk transmission of external policy shocks,and then an asset price analysis framework under external policy shocks is used to analyze the impact of banking heterogeneity competition on resource allocation efficiency in the context of globalization and its operating mechanism.Furthermore,this article matches the Chinese industrial enterprise database with the China City Statistical Yearbook,constructs mixed panel data for the periods of 1998-2007 and 2010-2013,and uses the World Bank Database and the International Monetary Fund Database(IMF-IFS)to construct unbalanced panel data for 60 major countries globally from 1999 to 2020,to empirically test the theoretical analysis.The main conclusions of this paper are as follows:Firstly,this article matches the China Industrial Enterprise Database with the China City Statistical Yearbook,using the Herfindahl-Hirschman Index and the concentration ratio of state-owned large commercial banks to measure the overall competitiveness of the banking industry in cities.Meanwhile,the Olley and Pakes(1996)non-parametric estimation method is used to measure the level of misallocation of resources in cities,in order to examine the impact of increased overall competitiveness of the banking industry on resource allocation efficiency.On this basis,the heterogeneity of the impact of banking competition on different levels of economic activity,entrepreneurial activity,and marketization is analyzed to clarify the specific context and conditions required for banking competition to optimize resource allocation.At the same time,from the perspective of different types and credit demands of enterprises,the financing status of enterprises is identified to explore the possible sources of improvement in resource allocation efficiency,and to analyze whether banking competition will have differentiated impacts on different types and credit demands of enterprises,thus revealing possible impact mechanisms.The study found that the increase in the intensity of banking competition significantly reduced the level of misallocation of resources in cities,and this effect was more significant in areas with lower economic activity levels.The research conclusion still holds true after joint testing with internal and external instrumental variables,using the average level of banking competition in cities with similar economic sizes within the same province as the instrumental variable,and constructing internal instrumental variables using Lewbel’s(2012)heteroscedasticity identification method.Furthermore,the efficiency improvement effect of banking competition on resource allocation is mainly achieved by improving the financing environment of non-state-owned enterprises with weak financing constraints and lower productivity efficiency.In other words,the improvement effect is mainly driven by non-state-owned enterprises with certain production scales,geographical locations,and non-production organizational relationships,which to some extent reflects the mismatch between financial regulation and credit capacity.Secondly,building upon the aforementioned research,this paper examines the intrinsic connection between bank heterogeneity competition and resource allocation efficiency,taking urban commercial banks that support local economic development and improve local financial conditions as an example.The study finds that bank heterogeneity competition significantly reduces resource allocation efficiency at the urban level,but in a tight monetary policy environment,small and medium-sized banks actively engage in financial innovation activities based on their own risk preferences to offset the gradually rising financial costs in policy environment,thus showing a differentiated monetary policy transmission mechanism from large banks,producing differentiated policy effects and avoiding a "one-size-fits-all" policy orientation,ultimately alleviating resource mismatch.Furthermore,this alleviating effect mainly comes from enterprises with higher productivity but stronger financing constraints,indicating that under the adjustment role of tight monetary policy,bank heterogeneity risk-taking behavior enhances the resource allocation effect,directing more bank loans to enterprises with higher productivity but stronger financing constraints,thus reducing the degree of urbanlevel resource mismatch.Finally,considering the rapidly changing global economic development environment and increasingly complex economic situations,resource allocation efficiency is increasingly influenced by international monetary policy shocks.Starting from the context of globalization,this article uses the World Bank Database and the International Monetary Fund Database(IMF-IFS)to examine the impact of monetary policy spillovers on bank risk-taking behavior and the strengthening effect of trade network structure on the impact of heterogeneous bank competition on resource allocation efficiency.The study found that international monetary policy shocks have a spillover effect on domestic bank risk-taking behavior through the trade network structure,which strengthens the heterogeneous competition effect among banks.The above conclusions still hold when using dynamic panel models,interaction terms with country dummy variables and time trends,and replacing the non-performing loan ratio with bank risk Z-score to measure bank risk-taking levels.Further analysis shows that the greater the degree of urban trade openness,the stronger the impact of bank heterogeneity competition on resource allocation efficiency,that is,the international trade network has a strengthening effect on the impact of heterogeneous bank competition on resource allocation efficiency.The innovations of this article are as follows:Firstly,the theoretical model of the impact of bank competition on resource allocation efficiency has been extended,by introducing the monetary policy channel of bank risk-taking into the theoretical framework,and emphasizing the important roles of bank heterogeneity competition and trade network structure in the relationship between bank competition and resource allocation efficiency.The existing bank competition theories mainly focus on the differences in bank cost structure,neglecting the possible impact of differences in bank risk preferences.This paper extends the theoretical model of the impact of bank competition on resource allocation efficiency by incorporating the channel of monetary policy bank risk-taking into the theoretical framework.On the one hand,a credit selection model of bank heterogeneous competition with different risk preferences is established to analyze the impact of bank competition on resource allocation efficiency under different types of monetary policy shocks.On the other hand,a monetary policy risk transmission model based on international trade network is constructed to reveal the impact of monetary policy spillover effects on the relationship between bank competition and resource allocation efficiency in the context of globalization.The theoretical model of this paper not only captures the characteristics of bank heterogeneous risk preferences at the micro level but also incorporates macro-level monetary policy shocks,providing a more comprehensive theoretical framework for bank competition and resource allocation efficiency,which is an important supplement to the relevant theoretical research literature.Secondly,it reveals the improvement in resource allocation efficiency due to heterogeneous competition among banks under a contractionary monetary policy.It is found that the heterogeneous risk preference characteristics of banks lead to different monetary policy transmission effects,highlighting the important role of the monetary policy bank risk-taking channel in the impact of bank competition on resource allocation efficiency.Existing research has focused on the financial risks caused by heterogeneous competition among banks,believing that it can lead to excessive loans to enterprises with financial ownership advantages,which in turn can create zombie companies and increase systemic financial risks.However,this study found that the heterogeneous risk preference characteristics of banks lead to different monetary policy transmission effects,producing differentiated policy effects and avoiding a "one-size-fits-all" policy approach.Specifically,under a contractionary monetary policy environment,small and medium-sized banks,based on their own risk preference characteristics,actively engage in new financial innovation activities to offset the gradually rising financing costs under the policy environment,thereby improving resource allocation efficiency.The findings of this study highlight the important role of the monetary policy bank risk-taking channel in the impact of bank competition on resource allocation efficiency,providing useful policy references for relevant departments to optimize resource allocation efficiency through adjusting macroeconomic policies,stimulating financial innovation vitality,and improving internal governance systems.Thirdly,it reveals that the international trade network under the context of globalization has a strengthening effect on the impact of heterogeneous competition among banks on resource allocation efficiency.It is found that the higher the level of trade openness in a region,the stronger the impact of heterogeneous competition among banks on resource allocation efficiency.Existing literature on resource allocation efficiency has mostly been studied from a closed economy perspective.However,with the continuous advancement of globalization,resource allocation efficiency is increasingly affected by international monetary policy shocks.This study found that international monetary policy shocks have produced policy spillover effects through the trade network structure,affecting domestic bank risk-taking behavior and strengthening the heterogeneous competition effects among banks.The greater the level of trade openness in a city,the stronger the impact of heterogeneous competition among banks on resource allocation efficiency,indicating that the international trade network has a strengthening effect on the impact of heterogeneous competition among banks on resource allocation efficiency.The findings of this study have important practical significance for improving resource allocation efficiency,promoting high-quality development of the banking industry,and effectively responding to external shocks in the context of globalization. |
