The Infuence Of Industrial Structure Upgrading On The Loan Quality Of Commercial Banks

The upgrading of industrial structure is an important strategic task of China’s economic restructuring,which is related to the quality of China’s economic development.How to steadily move towards high-quality development is the most valuable proposition at this stage.In the process of upgrading and development,financial support is indispensable.To form a financial system that can meet the development of high-tech industry is an important measure to realize the upgrading of industrial structure.For a long time,China has attached great importance to the implementation of the industrial structure upgrading strategy.In this process,financial support plays an important role,but the upgrading of industrial structure brings hidden risks to commercial banks,mainly reflected in the loan quality of commercial banks.This paper selects the data of 31 provinces(autonomous regions,municipalities directly under the central government)in 2008-2017 for empirical analysis to test the impact of industrial structure upgrading on the loan quality of commercial banks.The results show that the upgrading of industrial structure promotes the commercial banks to increase the credit to the related emerging industries,which leads to the increase of passive risks faced by commercial banks,the rise of non-performing loan rate and the decline of loan quality.This paper also divides 31 provinces(autonomous regions,municipalities directly under the central government)into three regions: the eastern region,the central region and the western region,and studies in the same way the impact of industrial structure upgrading on the loan quality of commercial banks.The results show that: because of different regions and different economic developmentspeed,the impact on the loan quality of commercial banks is different.Through research findings,Industrial structure upgrading is a process of gradual development from the low-level stage to the high-level stage of industrial structure.In the process of industrial structure upgrading and development,the credit demand of enterprises will inevitably be affected.Commercial banks will also make corresponding business adjustments to industrial structure upgrading,so as to find out that the relevant policies of commercial banks to support industrial structure upgrading form a positive feedback mechanism.This process may lead to the increase of non-performing loans and bring huge pressure on the loan quality of commercial banks,which requires the banking industry to do a good job in credit risk control and guarantee to prevent the impact on the loan quality.Finally,combined with the actual situation of industrial structure upgrading and loan quality development in China,some suggestions are put forward to avoid the adverse effects of industrial structure upgrading on loan quality.