Study On The Effect Of Bank Competition On Credit Access Of Small And Medium-sized Listed Enterprises

At the end of 2017,50%of the total tax revenue in China was paid by small and medium-sized enterprises.At the same time,the economic aggregate of small and medium-sized enterprises accounted for more than 60%of the GDP,which was the most dynamic economic entity in China’s economic development.However,due to its own small scale and less current cash flow,there are certain obstacles in obtaining loans.SMEs will get better developed if more banks in the credit market are willing to lend to SMEs.With the change of the external impact of the market structure of China’s banking industry,how the financial support obtained by small and medium-sized enterprises will change has always been the focus of scholars at home and abroad.After more than 30 years of reform,China’s banking industry has continuously improved the degree of marketization,and the degree of competition is becoming more and more intense.What impact will the improved degree of competition in the banking industry have on the loans of small and medium-sized enterprises.The existing literature has not reached a consensus conclusion on the relationship between the two,Based on this realistic and theoretical background,the research direction of this paper is that the bank competition affects the different types of loans on different types of loans.Based on this study purpose,an empirical study of the two relationship is conducted.Specifically,first,this paper analyzes the mechanism of SME loans as transactional or relationship loans according on the properties of loan time and loan bank details,and combines the information hypothesis and market force hypothesis;and proposes the research assumptions of the paper.Subsequently,the reasonableness of this method is stated.Next,this paper measures the degree of banking competition by prefecture-level,and uses the number of financial licenses disclosed by China Banking and Insurance Regulatory Commission to construct prefecture-level banking competition index,set as explanatory variable;Finally,the data of SMEs from 2012-2019,builds a random effect model for non-balance panel data,and then expand regression analysis and robustness test.The main conclusions drawn from the empirical results are:(1)at the national level,The impact of increased competition in banks on loan availability for SMEs is not first-order,there is an inflection point effect,That is,the improvement of bank competition at the beginning of the relational loans and transaction loans obtained by small and medium-sized enterprises,But when the bank competition crosses a certain range,Both loans available to SMEs will increase as banks compete further;(2)further compared the impact of the two different loans and found that,To the extent of the impact,Bank competition plays a stronger role in promoting relational loans than transactional loans;In terms of the impact time,The inflection point of relational loans came earlier.(3)There is significant regional heterogeneity in the effect of banking competition on SME lending.SMEs in the eastern region have a significant inflection effect on relationship and transaction-based loans,while bank competition in the central region has an inflection effect on relationship-based loans only,and bank competition in the western region has no inflection effect on both relationship-based and transaction-based loans.Finally,considering the full text analysis,this paper presents relevant policy suggestions from the government and bank perspective.