A Study On The Channels Of Bank Regulation’s Impact On Commercial Credit Reallocation Function From A Credit Perspective

The problem of credit discrimination in the credit market is one of the fundamental reasons that induce enterprises to use commercial credit to reallocate credit funds.However,the reconfiguration function of commercial credit can alleviate the financing pressure of small and medium-sized enterprises,adjust and optimize the allocation of credit resources,and may also lead to physical enterprises’ transition from real to virtual,and even trigger systemic financial risks.In recent years,in order to prevent and resolve systemic financial risks,regulatory authorities have continuously strengthened banking supervision,which will have an impact on the credit scale and cost of supporting the real economy in the banking industry,thereby affecting the reconfiguration function of commercial credit for Chinese enterprises.Therefore,exploring the impact of bank regulation on the reallocation function of commercial credit not only enriches relevant research on the reallocation function of commercial credit,but also helps to optimize the allocation of credit resources in China,promote the "transition from virtual to real" of physical enterprises in China,and prevent and resolve systemic financial risks.This article starts from the perspective of credit and,based on the policy background of regulatory authorities increasing banking regulation after 2017,constructs a generalized double difference(DID)model to explore the impact and transmission channels of banking regulation on the reallocation function of commercial credit.Firstly,the existing literature is reviewed and summarized from two perspectives: the influencing factors of commercial credit reallocation function and the impact of bank regulation on commercial credit reallocation function.Secondly,this article elaborates on the current situation of bank supervision and commercial credit reallocation functions in China and proposes issues such as imbalanced utilization of commercial credit reallocation functions in China.Once again,analyze the theoretical basis of the impact of bank regulation on the reallocation function of commercial credit,mainly including financial fragility theory,credit discrimination theory,alternative financing theory,and commercial credit reallocation theory.On this basis,from the perspectives of bank credit financing scale and credit financing cost,this study reveals the transmission channels through which bank regulation affects the reallocation function of commercial credit in China.Subsequently,through empirical testing using the generalized double difference model,it was found that the increase in bank regulatory intensity will have a negative inhibitory effect on the reallocation function of commercial credit in China.The transmission channel test further found that the intensity of bank regulation mainly suppresses the reallocation function of commercial credit through two dimensions: reducing the credit financing scale of listed companies and increasing the credit financing cost of listed companies.Finally,it is proposed to improve the efficiency of credit resource allocation,optimize the market structure of the banking industry,improve the development environment of the real economy,and strengthen the functional supervision of the financial system.The innovation of this article mainly lies in exploring the impact of bank regulation on the reallocation function of commercial credit from a credit perspective,and expanding the relevant research on the micro effects of bank regulation.