Research On The Influence Of The Development Of China’s Urban Commercial Banks On Regional Economic Growth And Its Mechanism

The development of city commercial banks is a process of crisis driven reform.From the establishment of the first urban credit cooperative in 1979 to the establishment of the first urban commercial bank(hereinafter referred to as "city commercial bank")in1995,urban commercial banks have been growing from scratch,from small to large,playing an irreplaceable role in regional economic growth.Based on the local and serving entities,city commercial bank has always adhered to the basic positioning of "serving the local economy,serving small and medium-sized enterprises and serving urban residents",to help the growth of small and medium-sized enterprises.Compared with large commercial banks and joint-stock commercial banks,city commercial banks are more familiar with the local capital demand pattern and situation policies,and have comparative advantages in the screening of enterprise soft information.They often provide a lot of relational credit for small and medium-sized enterprises.Under the current background of "financing difficulties for small and medium-sized enterprises" and "financing expensive in the real economy",it is of great theoretical and practical significance to study the impact of the development of urban commercial banks on regional economic growth and its mechanism of action.The existing literature explains the reasons for the big gap between the economic level of the east and central regions of China from different angles,and studies the development orientation and path,operating characteristics and advantages,development strategy and existing problems of urban commercial banks from different angles.Although there have been relevant studies on city commercial banks or local small banks and regional economic growth at home and abroad,there have been few discussions on the various mechanisms and channels of banks affecting regional economic growth,and the lack of the overall analysis and evaluation of Chinese city commercial banks from the nationwide scope,leading to the lack of applicability and credibility of the empirical results.Therefore,this dissertation will combine with the specific national conditions of our country to do the overall analysis and evaluation of the development of Chinese city commercial banks.Based on the basic national conditions of unbalanced economic development in the east,middle and western regions of China,this dissertation deeply explores the regional heterogeneity of the impact of the development of urban commercial banks on regional economic development,and deeply analyzes the impact of the development of urban commercial banks on regional economic growth and its mechanism.This dissertation is divided into four parts,a total of 7 chapters.The first part includes Chapter 1 and Chapter 2,which mainly introduces the basis of the thesis,research ideas and literature review at home and abroad.Chapter 1 is the introduction,which specifically introduces the research background,content framework,research significance and research methods of this dissertation,and expounds the innovation points and shortcomings of urban commercial banks in serving regional economic growth.Chapter 2 is the literature review at home and abroad,a comprehensive introduction to urban commercial banks and regional economic growth related research progress at home and abroad and comments on it.The second part,which includes Chapter 3 and Chapter 4,is the theoretical basis of this dissertation.Chapter 3 is an analysis of the competition status and regional economic development status of Chinese urban commercial banks.It summarizes and analyzes the development history of domestic and foreign urban commercial banks,the main characteristics and industry competition status of Chinese urban commercial banks,and the positioning of regional economic development.It also analyzes the current impact of the development of Chinese urban commercial banks on regional economic growth.Chapter 4 is a theoretical analysis of the impact of the development of urban commercial banks in China on regional economic growth.It elaborates on the theoretical basis of the impact of urban commercial banks on regional economic growth in China,and elaborates on the mechanism of the impact of urban commercial banks on regional economic growth from the perspectives of small and micro enterprises,technological innovation,and consumer finance.The third part includes chapters 5 and6,which are the qualitative and empirical analysis parts of this thesis.Chapter 5 is an empirical study on the impact of the development of urban commercial banks in China on regional economic growth.Chapter 6 examines the mechanism of the impact of the development of urban commercial banks in China on regional economic growth.Chapters 5 and 6 empirically demonstrate the impact and mechanism of urban commercial banks in China on regional economic growth based on multiple linear regression models and multi-period double difference models.Based on theoretical research and current situation analysis,this section conducts an overall and sub perspective empirical analysis of the economic growth of urban commercial banks serving the local economy,and provides a detailed analysis of the impact and degree of urban commercial banks supporting and serving the local economy from both qualitative and quantitative perspectives.The fourth part is chapter 7,namely the conclusion and policy suggestions.On the basis of the previous three parts of the research,this part draws the main conclusions of urban commercial banks to serve the regional economic growth,and puts forward the specific countermeasures,suggestions and research prospects of urban commercial banks to serve the regional economic development.The research conclusions of this dissertation mainly include the following four aspects:(1)Based on the empirical analysis results at the provincial level,the development of urban commercial banks is significantly positively correlated with regional economic growth.This result is still valid after the robustness test of changing explanatory variables,explained variables,transforming bank micro-data and eliminating municipalities.The results based on the bank micro-data show that there is a significant positive correlation between the deposit and loan scale of urban commercial banks and regional economic growth.This means that there is higher level of regional economic growth as the total amount of loans or deposits of the selected sample banks rises.(2)In order to avoid the doubtful results caused by the use of overall and individual data for regression and to solve the endogenous problem,this dissertation adopted the multiphase differential model(DID)and verified the influence of urban commercial banks on regional economic growth again by comparing the results of the processing group and the control group before and after the establishment of urban commercial banks.The results show that the establishment of city commercial banks significantly promotes regional economic growth.After the establishment of city business firms in each region,regional economy has increased obviously.This result is still valid after robustness tests including parallel trend test,placebo test,change of explanatory variables,exclusion of municipalities,tail reduction treatment and quantile regression.The heterogeneity analysis results show that there is significant regional heterogeneity in the east,middle and western regions.(3)The test results of the mechanism of the influence of city commercial banks on regional economic growth show that the development of small and micro enterprises,scientific and technological innovation,and consumer finance are important mechanisms for the development of city commercial banks to promote regional economic growth.(4)According to the qualitative and empirical analysis results,this dissertation puts forward some policy suggestions for urban commercial banks to promote regional economic growth.On the one hand,urban commercial banks need to make strategic decisions;On the other hand,it is necessary to strengthen and enhance the endogenous mechanism of serving the regional economy.Firstly,urban commercial banks should be positioned to adhere to serving regional economic growth and create unique financial services and products based on the heterogeneity of regional economic structure.Secondly,urban commercial banks must clarify their differentiated competitive strategies based on the market positioning of small corporate commercial banks,and provide comprehensive and inclusive financial services for the real economy;Expand channels in a three-dimensional way,and carry out Financial innovation in response to changes in market demand.The third is that urban commercial banks should deeply tap into their potential and "sink down" to comprehensively serve the grassroots customer base of street communities.The innovation of this thesis is mainly reflected in the following three aspects:firstly,based on the SCP paradigm theoretical framework,it analyzes the market competition positioning of urban commercial banks.This thesis uses the theoretical framework of the SCP paradigm to construct relevant indicators from three aspects:market structure,market behavior,and market performance.It compares and analyzes the market competition situation between urban commercial banks and central banks,policy banks,and other commercial banks,and further explores the ability of urban commercial banks to serve regional economic growth.The second is to enrich the research on the impact of urban commercial bank development on regional economic growth,and further consolidate and expand the research on the relationship between financial development and regional economic growth.This thesis not only takes the number of urban commercial banks,total number of people,and total assets in various regions from 2004 to 2021 as samples,but also selects more than 30 urban commercial banks from different cities in the eastern,western,and central regions of Beijing,Shanghai,Nanjing,Wuhan,Ningxia Yinchuan,and Lanzhou,Gansu,to empirically test the impact of urban commercial bank development on regional economic growth at the urban and enterprise levels.To avoid endogeneity issues,the multi-period double difference method was used to examine the impact of the establishment of urban commercial banks on regional economic growth,and to examine the regional heterogeneity of the impact of urban commercial bank development on regional economic growth.Thirdly,the impact mechanism of urban commercial banks on regional economic growth was deeply explored from different perspectives.Previous studies have shown that urban commercial banks mainly provide financing support for investment activities of enterprises,thereby affecting regional economic growth.Intensified bank competition can improve the quantity and efficiency of credit,thereby promoting economic growth.Government intervention and protection largely ensure the normal operation of small and medium-sized banks such as urban commercial banks.This thesis not only considers corporate financing activities,but also starts with the "consumption" of the three carriages of economic growth and the direct driving force of economic growth "innovation".It empirically tests the impact of urban commercial banks on regional economic growth by promoting small and micro enterprises,technological innovation,and consumer finance development.Based on the empirical results,corresponding development suggestions are proposed.