Private Financial Geography Clustering and Bank Credit Risk Mitigation:Micro-Evidence from Institutional Geographic Distribution Data
Based on data concerning the distribution of bank branches and the business reg-istration records of private financial institutions,this study constructed an index system for the de-velopment of private finance at the geographical structure level.It then explored how the clustered distribution of private financial institutions around banks influences bank credit risk.The findings indicate that the geographical clustering of private financial institutions alleviates bank credit risk;in particular,the greater the number and capital scale of private financial institutions sur-rounding a bank,the lower the credit risk for that bank.The effectiveness of this risk mitigation is contingent on the loan structure of the bank and its geographical proximity to these private institu-tions.A higher proportion of small and micro loans in a bank's loan portfolio and closer geograph-ical proximity between private financial institutions and banks facilitate the channel through which private finance impacts bank credit risk.Heterogeneity analysis shows that private finance plays a more effective role in mitigating risk when banks are less competitive and when financial regula-tion is stricter.Based on these insights,it is recommended to enhance policy support for private fi-nance and encourage symbiotic development with banks,to enact regulatory statutes that strictly define the business boundaries of private finance,and to establish a system for the disclosure of information by private financial institutions.
bank credit riskfinancial geography structuregeographic clusteringprivate fi-nance
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NSTL
万方数据
