Research On The Influence Of Banking Structure On Industrial Structure Upgrading

In the context of gradually promoting industrial development strategies such as striving to build a modern industrial system,accelerating the promotion of industrial structure upgrading has become an important focus point to support China’s economy to achieve high-quality development.As an important part of China’s financial system and an important hub for credit resource allocation,banking financial institutions have,on the one hand,broadened the external financing channels in the process of industrial structure upgrading;on the other hand,they have played an important role in guiding the flow and allocation of production resources to key industries or emerging industries by adjusting the scale of credit fund allocation and key areas.Therefore,within the framework of the current bank-led financial structure in China,it is of certain theoretical value and practical significance to investigate how the banking industry structure affects industrial structural upgrading and its internal influence mechanism.To this end,this study combines the theories of optimal financial structure and financial function,and 29 provinces(cities and autonomous regions)in China,except Tibet and Hainan,are selected as research samples from 2005 to 2020.Firstly,the development trend and current situation of the banking industry structure and industrial structure are summarized.Second,according to the proposed research hypotheses,the impact of banking industry structure on industrial structure upgrading and its internal influence mechanism were analyzed empirically using panel fixed-effects model and mediating-effects model.The results show that:(1)at the national level,the increase in the market share of small and medium-sized banks in the banking industry has a significant positive impact on the upgrading of industrial structure,and the development of small and medium-sized banks and the accompanying increase in the level of competition in the banking industry have a catalytic effect on the upgrading of industrial structure.(2)At the regional level,the increase in the market share of small and medium-sized banks in regional banking financial institutions in central,western and northeastern regions has a significant positive effect on industrial structure upgrading,but this effect is not significant in eastern regions.The strength of the positive effect is generally decreasing in the order of central,northeast,west and east.(3)The structure of the banking sector affects the tightness of credit constraints.The change in banking sector structure,reflected by the increase in market share of small and medium-sized banks,is conducive to reducing credit constraints.(4)The results of the intermediation effect test show that,at the national level,the credit constraint tightness has a significant intermediation effect in the influence of banking industry structure on industrial structure upgrading,and the regulation of credit constraint tightness is an important way for banking industry structure to contribute to industrial structure upgrading in general.At the regional level,there is a significant mediating effect of credit constraint tightness in the influence of banking industry structure on industrial structure upgrading in central and western regions,but the above mediating effect is not reflected in eastern and northeastern regions.(5)Through the endogeneity test,it is found that there is a time lag effect on the impact of China’s banking industry structure on industrial structure upgrading.Based on the above findings,this paper proposes to pay attention to the regional differences in the structure of the banking industry and optimize the structure of the regional banking industry "according to local conditions";to strengthen the awareness of risk prevention and control and internal and external supervision of small and medium-sized banks while further developing and gradually increasing their participation in the market;from the perspective of social responsibility,to actively play a positive role in guiding the flow of credit resources by banking financial institutions is an important measure to promote the upgrading of industrial structure.