Research On The Impact Of Banking Market Competition On Credit Financing Of Environmental Enterprises

Financing support is the key of the supporting factor for the effective supply of environmental-friendly products.The bank's green financing support for environmental protection enterprises meets the needs of the environmental market,and makes the bank faces environmental risk transfer and short-term opportunity cost.Bank competition encourages the participation of environmental protection financing supplies,but also exacerbates market risks.Under the background of the banking market reform and the corporate green transformation and the dual constraints of financing availability and financing efficiency,how to get effective financing support and competitive bank supply to achieve win-win under the risk balance is the focus of this paper.Focusing on the above-mentioned core issues,the paper follows the logical path of "finding problems-raising problems-solving problems",analyzing the relationship between bank market competition and the amount and cost of credit financing of environmental protection enterprises.In the part of theoretical analysis,a mathematical model of the impact of bank market competition on credit financing of environmentally-friendly enterprises is constructed from the perspective of the environmental protection company's credit fund demand and bank credit supply,from the model we can conclud that banking market competition can enable environmentally-friendly enterprises to obtain low-cost and high-quality Loans,and then explain the role of bank competition from the theory of loanable funds.In the empirical part,the coefficient of variation is used to normalize the amount and the cost of financing to construct a "credit financing favorable index" to measure the explanatory variables.The paper uses unbalanced panel data of environmentally friendly A-share listed companies from 2007 to 2017,and uses_Static panel fixed benefit model,panel stochastic TOBIT model,and systematic GMM method to estimat and test the impact of bank market competition on the availability and efficiency of credit financing for environmental protection companies.Finally,the systematic GMM estimation method is used to verify the regulatory effect of corporate risk.The research finds that:(1)There is an inverted U-shaped non-linear relationship between bank market competition and the availability and efficiency of corporate credit financing.(2)Corporate risk has an inverted "U" regulatory role in the process of bank market competition affecting corporate credit financing.(3)Considering the heterogeneity of enterprises,non-state-owned environmental protection enterprises are more sensitive to the impact of banking market competition.To sum up,this study proposes that the bank market competition which is conducive to environmental protection corporate credit financing needs to reach the extreme point of the U-shaped curve;in order to improve the rate of the bank's financial support for environmental protection enterprises,companies should match financing needs with risks to adjust the competition in the bank market which is the most favorable for self-financing;the government should reasonably guide the flow of credit funds,and leverage government funds as leverage to plow more social funds to promote the development of environmental protection enterprises.