Economic Growth Pressure,Environmental Regulation And City Commercial Bank Credit Structure

The city commercial bank has been an important part of Chinese banking industry since the city’s first commercial bank was founded.City commercial banks have also achieved rapid development under national macro policy.By the end of 2021,the number of urban commercial banks in China had reached 128.And The total assets has grown to45.1 trillion yuan,an increase of 9.7 percent over the previous year.It accounts for 13.1percent of banking financial institutions.City commercial banks were also active in fostering regional financial and economic development.It can be found that city commercial banks have always maintained close contact with the local government,which is because their establishment aims to fund local small enterprises and serve the local economic development.When the local economic growth pressure is large,the local government will influence the bank credit behavior.Therefore,in the face of this kind of local economic growth pressure,how will the credit structure of city commercial banks change? This is the key research content of this paper.With the increasingly severe environmental pollution,environmental protection has become a key issue concerned by the whole society.The central government’s policy orientation has begun to pay attention to the factors of ecological civilization,and environmental assessment has been included in the official performance assessment system.Then,under the dual pressure of environmental protection and economic growth,how will local governments guide the credit structure of city commercial banks to change?This still needs further study.Using the data of 75 city commercial banks from 2008 to 2020,this paper manually collects and collates the information disclosed in the social responsibility report and annual report of city commercial banks,and investigates the influence of local economic growth pressure on the credit structure of city commercial banks.It analyses the regulatory effect of environmental regulation on economic growth pressure and the credit structure of city commercial banks in the context of the change in the appraisal regime,which has certain reference significance for city commercial banks in the transition period.Firstly,this paper makes a brief review of literature on credit behavior of commercial banks,economic growth pressure and environmental regulation.Secondly,the paper analyzes how economic growth pressure affects the credit structure of city commercial banks,how environmental regulation adjusts the relationship between economic growth pressure and credit structure of city commercial banks,and puts forward the corresponding research hypothesis.The panel data regression model is then constructed to empirically test the above issues.Then further explore the government intervention degree and marketization level of heterogeneity.In conclusion,combining with the empirical findings,this paper advances the corresponding findings and advances corresponding policy suggestions for the future development of city commercial banks.Through empirical research,this paper finds that:(1)The pressure of economic growth will affect the loan selection of city commercial banks.The economic growth pressure is positively correlated with the proportion of loans to the real estate industry,and negatively correlated with the proportion of environmental loans,but has no significant and credible influence on the proportion of other types of loans(manufacturing,construction,wholesale and retail,leasing and service loans)to the loans of city commercial banks.(2)Environmental regulations can weaken the negative impact of economic growth pressure on city commercial banks’ environmental loans,but there is no evidence that environmental regulations can interfere with the impact of economic growth pressure on real estate loans or other types of loans.(3)The impact of economic growth pressure on environmental loans of city commercial banks only exists in the city commercial banks with a higher degree of government intervention and a lower level of marketization,while the effect does not exist in the city commercial banks with a lower degree of government intervention and a higher level of marketization.The regulating effect of environmental regulation on economic growth pressure and environmental loans of city commercial banks only exists in city commercial banks with higher degree of government intervention and lower marketization level.