The Cost Reserch Of The Credit Rent-seeking Behaviors In Commercial Banks

Since the Economic Reforms and Opening to the outside world, China's commercial banking system reforms have been achieved great results. The market mechanism has played a more and more important role in banking credit business. However, the credit rent-seeking behaviors of commercial banks still exist and have caused a huge cost for our economic development. The reason for this situation mainly is the system factors which can explain the credit rent-seeking behaviors are still not dispersed by the Chinese finance reforms. As a result, we must comprehensive research the cost scale and their reasons of credit rent-seeking behaviors'in Chinese commercial banking systems.At first, this paper pointed out that the governmental control to the credit market makes the huge rent profits in our credit market, the weakness in internal managements of Chinese commercial banks gives the rent-seeking behaviors spaces to operate, and the soft budget constraint provided by Chinese government to commercial banks secures the rent-seeking behaviors from outside. And for all of these reasons above, the credit rent-seeking behavior of commercial banks in China is a difficult problem for our reform. Then, this paper divides the rent-seeking cost into the business cost and social cost to analyze. To the former, the author analyzed the business costs of the credit rent-seeking behaviors from the angles of financers and commercial banks, and thanked that the governmental control to the credit market is the reason for financers'cost, while the weakness in internal managements of Chinese commercial banks is the reason for the cost of itself. To the latter, the author considered the social costs of credit rent-seeking behaviors, including the dominant costs of government finance and the hidden costs of social credit. The case of Liujinbao of BOC was analyzed after the calculations in order to verify the conclusions. At last, the author suggested that: deepening the financial reform, strengthening the internal banking management, establishing the information transmission and sharing system, and offering a hard budget constraint are the methods to deal with the credit rent-seeking behavior of Chinese commercial banks.