Research On The Counter-feeding Effect Of Science And Technology Finance On Traditional Banking Industry

In recent years,the GDP level of all provinces in China has maintained a steady growth rate,and the efficiency and quality of economic growth have been continuously improved.The report of the 19 th National Congress of the Communist Party of China pointed out that China's economy has shifted from a high-speed growth stage to a highquality development stage.As an integral part of China's financial industry,the banking industry is an important support for China's economic development.The study of the efficiency of the banking industry is conducive to exploring how the financial industry should position itself in the new economic normal.However,under the new economic normal,the business situation of traditional finance has become increasingly severe,and more and more banks have turned their attention to technology finance.With regard to the research of science and technology finance,more and more literature has proved that technology finance can promote economic growth and technological innovation.Studies such as King and Levine have found that a welldeveloped technology finance system can promote innovation,increase productivity,and stimulate economic growth.Therefore,in order to promote the construction of innovative countries and technological powers,banks,as the cornerstone of China's financial system,have invested a large amount of capital in science and technology finance.However,high risk is the most basic feature of technology finance.Is the capital invested by the banking industry for the development of science and technology finance a “unilateral blood transfusion” under the requirements of national policies,or is it a “mutual benefit” that pays off immediately? As a result of the innovation-driven development strategy,scholars have explored how the financial system led by banks supports technology finance and how technology finance promotes technological innovation.However,there is little concern about whether science and technology finance can counter the banking industry.At present,under the background of the new economic normality and financial disintermediation,the banking industry's operating situation is becoming more and more serious.While promoting science and technology innovation,can technology finance back to the banking industry and become a way out of the banking industry?In view of this,based on the data of 90 banks in 2011-2017,this paper firstly constructs the technology financial development index from the three dimensions of government,financial institutions and enterprises,and measures 90 regions in China through the two-stage DEA-Malmquist productivity index method.The total factor productivity of sex banks.Secondly,in the empirical analysis part,through the system GMM model,it is studied whether the technology finance has a counter-feeding effect on the total factor productivity of the bank;finally,using the panel threshold regression model and the dynamic panel model to study the science and technology finance on the bank's total factor productivity at the stage and Geographical heterogeneity impact.This paper mainly draws the following conclusions:(1)Technology finance can effectively counter the banking industry through technology spillovers,talent spillovers and economic spillovers,that is,technology finance has a counter-feeding effect on the banking industry.(2)The counter-feeding of science and technology finance has obvious threshold effect,that is,the heterogeneity effect in the stage of existence.In the different development stages of science and technology finance,the counter-feeding effect of science and technology finance on the banking industry is characterized by diminishing marginal utility.(3)There is a geographical heterogeneity impact of the counter-feeding effect of technology finance on the banking industry.The counter-feeding effect of science and technology finance on the banking industry is most obvious in the eastern region,followed by the central region and the western region.The development of science and technology finance in the western region has lagged behind the eastern and central regions for a long time,and has not yet formed an effective anti-feeding industrial chain.Finally,according to the empirical results of this paper,relevant policy recommendations are put forward:(1)The focus of national policies should be appropriately transferred to “Science and Technology Finance to Feed Traditional Finance”,so that science and technology finance can better exert spillover effects to counter the banking industry.(2)Promote the younger decision-making level of banks,gradually weaken the monopoly of banks and strengthen the concept of banking service innovation.(3)The development of science and technology finance in the western region should be actively promoted by the government,and the eastern and central regions should be dominated by market regulation.The innovations of this paper are as follows:(1)Domestic scholars mainly use the Malmquist index method to measure the total factor productivity of banks.Based on the foreign literature,this paper uses the two-stage DEA-Malmquist method to better match the banking business logic to measure the bank.Factor productivity.(2)This paper adopts reverse thinking and studies the impact of technology finance on the upstream banking industry.The research perspective is relatively new.